Masimo (MASI) 10-K 24 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2016	Jul. 04, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jan. 2, 2016
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	MASI
Entity Registrant Name	MASIMO CORP
Entity Central Index Key	937,556
Current Fiscal Year End Date	--01-02
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	49,487,811
Market Value of non affiliate stock at end of Q2		$ 1,241.6

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Current assets
Cash and cash equivalents	$ 132,317	$ 134,453
Accounts receivable, net of allowance for doubtful accounts of $1,967 and $1,890 at January 2, 2016 and January 3, 2015, respectively	80,960	71,017
Inventories	62,038	69,718
Prepaid income taxes	2,404	417
Other current assets	21,423	21,471
Total current assets	299,142	297,076
Deferred cost of goods sold	66,844	67,485
Property and equipment, net	132,466	101,952
Intangible assets, net	27,556	27,771
Goodwill	20,394	20,979
Deferred income taxes	44,320	42,258
Other assets	11,013	7,485
Total assets	601,735	565,006
Current liabilities
Accounts payable	25,865	38,045
Accrued compensation	38,415	33,600
Accrued liabilities	44,222	24,541
Income taxes payable	2,777	6,562
Deferred revenue	21,280	21,067
Current portion of capital lease obligations	74	79
Total current liabilities	132,633	123,894
Deferred revenue	298	453
Long term debt	185,071	125,145
Other liabilities	8,021	7,773
Total liabilities	$ 326,023	$ 257,265
Commitments and contingencies (Note 15)
Masimo Corporation stockholders’ equity:
Preferred stock, $0.001 par value; 5,000 shares authorized at January 2, 2016 and January 3, 2015; 0 shares issued and outstanding at January 2, 2016 and January 3, 2015	$ 0	$ 0
Common stock, $0.001 par value, 100,000 shares authorized at January 2, 2016 and January 3, 2015; 49,881 and 52,594 shares outstanding at January 2, 2016 and January 3, 2015, respectively	50	52
Treasury stock, 12,759 and 8,611 shares at January 2, 2016 and January 3, 2015, respectively	(340,873)	(185,906)
Additional paid-in capital	332,417	288,686
Accumulated other comprehensive (loss) income	(4,739)	(2,093)
Retained earnings	288,560	205,260
Total Masimo Corporation stockholders’ equity	275,415	305,999
Noncontrolling interest	297	1,742
Total equity	275,712	307,741
Total liabilities and equity	$ 601,735	$ 565,006

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,967	$ 1,890
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	49,881,000	52,594,000
Treasury stock, shares	12,759,000	8,611,000

CONSOLIDATED STATEMENTS OF OPE

CONSOLIDATED STATEMENTS OF OPERATIONS Statement - USD ($) shares in Thousands, $ in Thousands	3 Months Ended							9 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Jun. 28, 2014	Mar. 29, 2014	Sep. 27, 2014	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Statement [Abstract]
Product									$ 599,334	$ 556,764	$ 517,429
Royalty									30,777	29,879	29,816
Total revenue	$ 167,273	$ 152,575	$ 155,726	$ 154,537	$ 161,788	$ 140,923	$ 139,814	$ 144,118	630,111	586,643	547,245
Cost of goods sold									220,128	195,864	188,418
Gross profit	101,745	102,232	102,901	103,105	109,159	93,095	92,301	96,224	409,983	390,779	358,827
Selling, general and administrative									252,725	241,016	215,469
Research and development									56,617	56,581	55,631
Litigation settlement, award and/or defense costs									(19,609)	(10,331)	8,010
Total operating expenses									289,733	287,266	279,110
Operating income	36,892	28,140	27,841	27,377	32,647	18,405	30,193	22,268	120,250	103,513	79,717
Non-operating expense									(3,905)	(1,472)	(3,991)
Income before provision for income taxes									116,345	102,041	75,726
Provision for income taxes									34,845	27,678	20,005
Net income including noncontrolling interest									81,500	74,363	55,721
Net income (loss) attributable to the noncontrolling interest									(1,800)	1,845	(2,660)
Net income attributable to Masimo Corporation stockholders	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 21,221,000	$ 13,802,000	$ 22,632,000	$ 14,863,000	$ 83,300	$ 72,518	$ 58,381
Basic (in usd per share)	$ 0.48	$ 0.38	$ 0.38	$ 0.39	$ 0.40	$ 0.25	$ 0.40	$ 0.28	$ 1.62	$ 1.33	$ 1.03
Diluted (in usd per share)	$ 0.46	$ 0.36	$ 0.36	$ 0.38	$ 0.40	$ 0.24	$ 0.39	$ 0.27	$ 1.55	$ 1.30	$ 1.02
Basic (shares)									51,311	54,708	56,690
Diluted (shares)									53,707	55,571	57,480

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Statement [Abstract]
Net income including noncontrolling interest	$ 81,500	$ 74,363	$ 55,721
Net income including noncontrolling interest
Foreign currency translation adjustments	(2,646)	(6,088)	453
Total comprehensive income	78,854	68,275	56,174
Comprehensive (loss) income attributable to noncontrolling interest	(1,800)	1,845	(2,660)
Comprehensive income attributable to Masimo Corporation stockholders	$ 80,654	$ 66,430	$ 58,834

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interest
Beginning Balance at Dec. 29, 2012	$ 275,668	$ 57	$ (63,664)	$ 258,783	$ 3,542	$ 74,361	$ 2,589
Beginning Balance, shares at Dec. 29, 2012		57,308	3,156
Stock options exercised	$ 3,290	$ 1		3,289
Stock options exercised, shares	315	315
Income tax benefit from exercise of stock options	$ (615)			(615)
Compensation related to stock option grants to employees	11,674			11,672			2
Repurchases of common stock	$ (19,791)	$ (1)	$ (19,790)
Repurchases of common stock, shares	(1,000)	(1,000)	(1,000)
Issuance of shares in noncontrolling interest entity, net	$ 1						1
Net income	55,721					58,381	(2,660)
Foreign currency translation adjustment, net of tax	453				453
Ending Balance at Dec. 28, 2013	326,401	$ 57	$ (83,454)	273,129	3,995	132,742	(68)
Ending Balance, shares at Dec. 28, 2013		56,623	4,156
Stock options exercised	$ 4,683			4,683
Stock options exercised, shares	426	426
Income tax benefit from exercise of stock options	$ (132)			(132)
Compensation related to stock option grants to employees	11,005			11,002			3
Repurchases of common stock	(102,453)	$ (5)	$ (102,452)	4
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests	$ (38)
Repurchases of common stock, shares	(4,455)	(4,455)	(4,455)
Net income	$ 74,363					72,518	1,845
Foreign currency translation adjustment, net of tax	(6,088)
Foreign currency translation adjustment, before tax	(6,088)				(6,088)
Ending Balance at Jan. 03, 2015	307,741	$ 52	$ (185,906)	288,686	(2,093)	205,260	1,742
Ending Balance, shares at Jan. 03, 2015		52,594	8,611
Stock options exercised	28,326	$ 2		28,324
Adjustments Related to Tax Withholding for Share-based Compensation	$ (472)			(472)
Stock options exercised, shares	1,450	1,435
Income tax benefit from exercise of stock options	$ 5,058			5,058
Compensation related to stock option grants to employees	10,825			10,817			8
Repurchases of common stock	$ (154,967)	$ (4)	$ (154,967)	4
Repurchases of common stock, shares	(4,148)	(4,148)	(4,148)
Issuance of shares in noncontrolling interest entity, net	$ 347						347
Net income	81,500					83,300	(1,800)
Foreign currency translation adjustment, net of tax	(2,646)
Foreign currency translation adjustment, before tax	(2,646)				(2,646)
Ending Balance at Jan. 02, 2016	$ 275,712	$ 50	$ (340,873)	$ 332,417	$ (4,739)	$ 288,560	$ 297
Ending Balance, shares at Jan. 02, 2016		49,881	12,759

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Cash flows from operating activities:
Net income including noncontrolling interest	$ 81,500	$ 74,363	$ 55,721
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Depreciation and amortization	15,684	12,818	11,421
Share-based compensation	10,825	11,005	11,674
Loss on disposal of property, equipment and intangibles	608	918	765
Provision for doubtful accounts	342	583	728
Benefit from deferred income taxes	(1,974)	(320)	(8,613)
Income tax benefit from exercise of stock options granted prior to January 1, 2006	2,055	264	693
Excess tax (benefit) deficit from share-based compensation arrangements	(3,003)	396	1,308
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(9,900)	4,862	(9,576)
Decrease (increase) in inventories	7,505	(13,434)	(9,453)
Decrease (increase) in deferred cost of goods sold	452	(5,888)	(9,594)
(Increase) decrease in prepaid income taxes	(1,992)	3,316	(1,660)
Increase in other assets	(3,542)	(2,619)	(756)
(Decrease) increase in accounts payable	(4,319)	(1,375)	1,238
Increase in accrued compensation	5,334	4,948	4,557
Increase in accrued liabilities	19,902	1,837	6,406
(Decrease) increase in income taxes payable	(739)	3,909	(381)
Increase in deferred revenue	58	199	1,467
(Decrease) increase in other liabilities	(4,587)	227	(842)
Net cash provided by operating activities	114,209	96,009	55,103
Cash flows from investing activities:
Purchases of property and equipment	(50,393)	(75,061)	(9,428)
Increase in intangible assets	(4,201)	(3,903)	(4,374)
Net cash used in investing activities	(54,594)	(78,964)	(13,802)
Line of credit and current portion of capital lease obligations	130,000	125,000	0
Repayments of Lines of Credit	70,000	0	0
Payments of Debt Issuance Costs	0	(436)	0
Cash flows from financing activities:
Repayments on capital lease obligations	(80)	(111)	(132)
Proceeds from issuance of common stock	28,285	4,680	3,289
Payments Related to Tax Withholding for Share-based Compensation	(472)	0	0
Excess tax benefit (deficit) from share-based compensation arrangements	3,003	(396)	(1,308)
Repurchases of common stock	(150,152)	(102,453)	(19,790)
Net equity issuances (repurchases) by noncontrolling interest	346	(38)	0
Net cash provided by (used in) financing activities	(59,070)	26,246	(17,941)
Effect of foreign currency exchange rates on cash	(2,681)	(4,304)	552
Net increase (decrease) in cash and cash equivalents	(2,136)	38,987	23,912
Cash and cash equivalents at beginning of period	134,453	95,466	71,554
Cash and cash equivalents at end of period	$ 132,317	$ 134,453	$ 95,466

Description of the Company

Description of the Company	12 Months Ended
	Jan. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Company	Description of the Company Masimo Corporation (the Company), is a global medical technology company that develops, manufactures and markets a variety of noninvasive monitoring technologies. The Company’s mission is to improve patient outcomes and reduce cost of care by taking noninvasive monitoring to new sites and applications. The Company’s patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use, reusable or resposable sensors, software and/or cables. The Company primarily sells its products to hospitals, emergency medical service (EMS) providers, home care providers, physician offices, veterinarians, long term care facilities and consumers through its direct sales force, distributors and original equipment manufacturer (OEM) partners. The Company invented Masimo Signal Extraction Technology ® (SET ® ), which provides the capabilities of Measure-Through-Motion and Low-Perfusion ™ pulse oximetry to address the primary limitations of conventional pulse oximetry. Over the years, the Company’s product offerings have expanded significantly to also include noninvasive optical blood constituent monitoring, optical organ oximetry monitoring, electrical brain function monitoring, acoustic respiration monitoring and optical gas monitoring. The Company also developed the Root ® patient monitoring and connectivity platform and the Masimo Patient SafetyNet ™ remote patient surveillance monitoring system. These solutions and related products are based upon Masimo SET ® , rainbow ® and other proprietary algorithms. These software-based technologies are incorporated into a variety of product platforms depending on customers’ specifications. This technology is supported by a substantial intellectual property portfolio that the Company has built through internal development and, to a lesser extent, acquisitions and license agreements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jan. 02, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (VIEs) in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 weeks while a 53 week fiscal year includes three quarters of 13 weeks and one quarter of 14 weeks. The Company’s last 53 week fiscal year was fiscal year 2014. Fiscal year 2015 is a 52 week fiscal year. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted. Use of Estimates The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate accruals, valuation of the Company’s stock options, goodwill valuation, deferred taxes and any associated valuation allowances, distributor channel inventory, royalty revenues, deferred revenue, uncertain income tax positions, litigation costs and related accruals. Actual results could differ from such estimates. Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to current period presentation. Fair Value Measurements Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1-Quoted prices in active markets for identical assets or liabilities. • Level 2-Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3-Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect the fair value option under this guidance as to specific assets or liabilities. There were no transfers between level 1, level 2 and level 3 inputs during the years ended January 2, 2016 or January 3, 2015 . The Company carries cash and cash equivalents at cost which approximates fair value. As of January 2, 2016 and January 3, 2015 , the Company did not have any short-term investments. The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands): January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 57,168 $ — $ — $ 57,168 $ 57,168 Level 1: Bank time deposits 55,000 — — 55,000 55,000 Money market funds 20,149 — — 20,149 20,149 Subtotal 75,149 — — 75,149 75,149 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 132,317 $ — $ — $ 132,317 $ 132,317 January 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 92,888 $ — $ — $ 92,888 $ 92,888 Level 1: Bank time deposits 40,500 — — 40,500 40,500 Money market funds 1,065 — — 1,065 1,065 Subtotal 41,565 — — 41,565 41,565 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 134,453 $ — $ — $ 134,453 $ 134,453 Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments that are readily convertible into known amounts of cash, to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of trade receivables recorded upon recognition of revenue for product revenues, reduced by reserves for estimated bad debts and returns. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. Collateral is not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using a standard cost method, which approximates FIFO (first in, first out) and includes material, labor and overhead. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory that has a market price less than the carrying value in inventory. Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 39 years Building improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Land is not depreciated and construction in progress is not depreciated until placed in service. Normal repair and maintenance costs are expensed as incurred, whereas significant improvements that materially increase values or extend useful lives are capitalized and depreciated over the remaining estimated useful lives of the related assets. Upon sale or retirement of depreciable assets, the related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss on the sale or retirement is recognized in income. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , depreciation and amortization expense of property and equipment was $11.8 million , $9.1 million and $8.3 million , respectively. Intangible Assets Intangible assets consist primarily of patents, trademarks, software development costs, customer relationships and acquired technology. Costs related to patents and trademarks, which include legal and application fees, are capitalized and amortized over the estimated useful lives using the straight-line method. Patent and trademark amortization commences once final approval of the patent or trademark has been obtained. Patent costs are amortized over the lesser of 10 years or the patent’s remaining legal life, which assumes renewals, and trademark costs are amortized over 17 years, and their associated amortization cost is included in selling, general and administrative expense in the accompanying consolidated statements of operations. For intangibles purchased in an asset acquisition or business combination, which mainly include patents, trademarks, customer relationships and acquired technology, the useful life is determined in the same manner as noted above. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , amortization of intangible assets was $4.2 million , $3.7 million and $3.1 million , respectively. As of January 2, 2016 and January 3, 2015 , the total costs of patents not yet amortizing was $5.4 million and $6.4 million , respectively. As of January 2, 2016 and January 3, 2015 , the total costs of trademarks not yet amortizing was $0.9 million and $0.8 million , respectively. For the years ended January 2, 2016 and January 3, 2015 , total renewal costs capitalized for patents and trademarks was $0.7 million and $0.6 million , respectively. As of January 2, 2016 , the weighted-average number of years until the next renewal was one year for patents and five years for trademarks. The Company’s policy is to renew its patents and trademarks. Costs to renew intangibles are capitalized and amortized over the remaining useful life of the intangible. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. In accordance with authoritative accounting guidance, costs related to the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability. For each of the years ended January 2, 2016 and January 3, 2015 , the Company capitalized $0.5 million of software development costs. The Company did not capitalize any software development costs for the year ended December 28, 2013 . The capitalized costs are amortized over the estimated life of the products of seven years. The Company amortized $0.2 million for each of the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 . The Company had unamortized software development costs of $0.9 million and $0.6 million at January 2, 2016 and January 3, 2015 , respectively, which is included within intangible assets, net, on the consolidated balance sheets. Impairment of Goodwill and Intangible assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment for each of its reporting units, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macroeconomic, industry-specific and company-specific factors, including: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the first step of the two-step impairment test by comparing the fair value of the reporting unit, determined using future projected discounted operating cash flows, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, goodwill is considered impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of goodwill. The Company also has the option to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test. The annual impairment test is performed during the fourth fiscal quarter. The Company reviews identifiable intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of goodwill, intangible assets or other long-lived assets was recorded during the years ended January 2, 2016 , January 3, 2015 or December 28, 2013 . Income Taxes The Company accounts for income taxes using the asset and liability method, under which the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss and tax credit carryforwards. Tax positions that meet a more-likely-than-not recognition threshold are recognized in the first reporting period that it becomes more-likely-than-not such tax position will be sustained upon examination. A tax position that meets this more-likely-than-not recognition threshold is recorded at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Previously recognized income tax positions that fail to meet the recognition threshold in a subsequent period are derecognized in that period. Differences between actual results and the Company’s assumptions, or changes in the Company’s assumptions in future periods, are recorded in the period they become known. The Company records potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. As a multinational corporation, the Company is subject to complex tax laws and regulations in various jurisdictions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation, evolution of regulations and court rulings. Therefore, the actual liability for U.S. or foreign taxes may be materially different from the Company’s estimates, which could result in the need to record additional liabilities or potentially to reverse previously recorded tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is recorded against any deferred tax assets when, in the judgment of management, it is more likely than not that all or part of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods and tax planning strategies. Revenue Recognition and Deferred Revenue The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue from the sale of products or services when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. In the case of the license or sale of software that does not function together with hardware components to provide the essential functionality of the hardware, revenue is recognized pursuant to the software revenue recognition guidance. The Company derives the majority of its revenue from four primary sources: (i) direct sales under long-term sensor purchase agreements with end-user hospitals where the Company provides up-front monitoring equipment at no up-front charge in exchange for a multi-year sensor purchase commitment, (ii) other direct sales of noninvasive monitoring solutions to end-user hospitals, emergency medical response organizations and other direct customers; (iii) sales of noninvasive monitoring solutions to distributors who then typically resell to end-user hospitals, emergency medical response organizations and other direct customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company’s embedded software technology into their multiparameter monitoring devices. The Company enters into agreements to sell its noninvasive monitoring solutions and services, sometimes as part of multiple deliverable arrangements that include various combinations of products and services. While the majority of the Company’s sales transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation and analysis is sometimes required to determine the appropriate accounting, including: (i) how the arrangement consideration should be allocated among the deliverables when multiple deliverables exist, (ii) when to recognize revenue on the deliverables, and (iii) whether undelivered elements are essential to the functionality of the delivered elements. Changes in judgments on these assumptions and estimates could materially impact the timing of revenue recognition. In the case of multiple deliverable arrangements, the authoritative guidance provides a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence (VSOE) of fair value, (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE of fair value is defined as the price charged when the same element is sold separately. VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. TPE generally does not exist for the majority of the Company’s products. The objective of ESP is to determine the price at which the Company would transact a sale if the product was sold on a stand-alone basis. In the absence of VSOE and TPE, the Company determines ESP for its products by considering multiple factors including, but not limited to, features and functionality of the product, geographies, type of customer, contractual prices pursuant to Group Purchasing Organization (GPO) contracts, the Company’s pricing and discount practices, and market conditions. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. Most of the Company’s products in a multiple deliverable arrangement qualify as separate units of accounting. In the case of the Company’s monitoring equipment containing embedded Masimo SET ® or rainbow SET ™ software, the Company has determined that the hardware and software components function together to deliver the equipment’s essential functionality and, therefore, represent a single deliverable. However, software deliverables, such as rainbow ® parameter software, which do not function together with hardware components to provide the equipment’s essential functionality, are accounted for under software revenue recognition guidance. The revenue for these multiple-element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the revenue recognition accounting guidance for arrangements with multiple deliverables. Sales under long-term sensor purchase contracts are generally structured such that the Company agrees to provide at no up-front charge certain monitoring-related equipment, software, installation, training and/or warranty support in exchange for the hospital’s agreement to purchase sensors over the term of the agreement, which generally ranges from three to six years. The sensors are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. The Company generally does not recognize any revenue when the monitoring-related equipment and software are delivered to the hospitals, but rather recognizes revenue for these delivered elements on a pro-rata basis as the sensors are delivered under the long-term purchase commitment, when installation and training are complete. Accordingly, the cost of the monitoring-related equipment initially placed at the hospitals is deferred and amortized to cost of goods sold over the life of the underlying long-term sensor purchase contract. Some of the Company’s long-term sensor contracts also contain provisions for certain payments to be made directly to the end-user hospital customer at the inception of the arrangement. These payments are generally treated as prepaid discounts which are deferred and amortized on a straight-line basis as contra-revenue over the life of the underlying long-term sensor purchase contract. Many of the Company’s distributors purchase sensor products that they then resell to end-user hospitals that are typically fulfilling their purchase obligations to the Company under such end-user hospital’s long-term sensor purchase commitments. Upon shipment to the distributor, revenue is deferred until the distributor ships the product to the Company’s end-user customers based on an estimate of the inventory held by these distributors at the end of the accounting period. The Company also earns revenue from the sale of integrated circuit boards and other products, as well as from rainbow ® parameter software licenses, to OEMs under various agreements. Revenue from the sale of products to the OEMs is generally recognized at the time of shipment. Revenue related to software licenses to OEMs is generally recognized upon shipment of the OEM’s product to its customers, as represented to the Company by the OEM. The Company also provides certain customers with the ability to purchase sensors under rebate programs. Under these programs, the customers may earn rebates based on their purchasing activity. The Company estimates and provides allowances for these programs at the time of sale as a reduction to revenue. In general, customers do not have a right of return for credit or refund. However, the Company allows returns under certain circumstances. At the end of each period, the Company estimates and accrues for these returns as a reduction to revenue and accounts receivable. The Company estimates returns based on several factors, including contractual limitations and past returns history. The majority of the Company’s royalty revenue arises from one agreement with Medtronic plc (Medtronic, formerly Covidien Ltd.) and is due and payable quarterly based on U.S. sales of certain Medtronic products. An estimate of these royalty revenues is recorded quarterly in the period earned based on the prior quarter’s historical results, adjusted for any new information or trends known to management at the time of estimation. This estimated revenue is adjusted prospectively when the Company receives the Medtronic royalty report, approximately sixty days after the end of the previous quarter. Taxes Collected From Customers and Remitted to Governmental Authorities Pursuant to authoritative guidance, the Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities. Share-Based Compensation The Company expenses the estimated fair value of employee stock options and similar awards based on the fair value of the stock option on the date of grant, in accordance with the current authoritative accounting guidance. In calculating the fair value on the date of grant, the Company uses the Black-Scholes option pricing model which requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their stock options before exercising them, the estimated volatility of the Company’s stock price over the expected term and the number of options that will ultimately be forfeited prior to meeting their vesting requirements. The cost is recognized over the period during which an employee is required to provide services in exchange for the stock option, which is usually the vesting period. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire stock option. Options granted prior to January 1, 2006 were accounted for using the intrinsic value method and using the minimum value method for its pro forma disclosures, unless such options were modified, repurchased or canceled. The cash flows related to the reduction of income taxes paid as a result of the deduction triggered by employee exercise of stock options granted or modified prior to January 1, 2006 continue to be presented within operating cash flows. Shipping and Handling Costs and Revenue All shipping and handling costs are expensed as incurred and are recorded as a component of cost of goods sold in the accompanying consolidated statements of operations. Charges for shipping and handling billed to customers are included as a component of product revenue in accordance with authoritative accounting guidance. Product Warranty The Company provides a warranty against defects in material and workmanship for a period ranging from six months to sixteen months, depending on the product type. In the case of long-term sales agreements, the Company typically warranties the products for the term of the agreement, which ranges from three to six years. In traditional sales activities, including direct and OEM sales, the Company establishes an accrual for the estimated costs of warranty at the time of revenue recognition. Estimated warranty expenses are recorded as an accrued liability, with a corresponding provision to cost of goods sold. Revenue related to any extended warranty is recognized over the life of the contract, while the product warranty costs related to the long-term sales agreements are expensed as incurred. Changes in the product warranty accrual were as follows (in thousands): Year Ended January 2, January 3, December 28, Warranty accrual, beginning of period $ 1,416 $ 1,161 $ 838 Accrual for warranties issued 800 1,144 1,560 Changes in pre-existing warranties (including changes in estimates) 61 138 52 Settlements made (1,055 ) (1,027 ) (1,289 ) Warranty accrual, end of period $ 1,222 $ 1,416 $ 1,161 Advertising Costs Advertising costs are expensed as incurred. These costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Advertising costs for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 were $10.7 million , $10.7 million and $9.6 million , respectively. Research and Development Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities. Foreign Currency Translation The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has several foreign sales support subsidiaries that maintain foreign offices, of which the largest are in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company transacts with foreign customers in currencies other than the U.S. Dollar and, in doing so, experiences realized and unrealized foreign currency gains or losses on its foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions. Realized and unrealized foreign currency gains or losses are included as a component of non-operating expense within the Company’s consolidated statements of operations as incurred and are converted to U.S. Dollars at average exchange rates for the respective period. These transaction losses were $0.5 million , $1.0 million and $4.0 million for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. Assets and liabilities of foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated into U.S. Dollars at the rate of exchange at the balance sheet date. Statement of operations amounts are translated at the average monthly exchange rates for the respective periods. For these foreign subsidiaries whose functional currency is not the U.S. Dollar, translation gains and losses are included as a component of accumulated other comprehensive income (loss) within Masimo Corporation stockholders’ equity in the accompanying consolidated balance sheets. Comprehensive Income Authoritative accounting guidance establishes requirements for reporting and disclosure of comprehensive income and its components. Comprehensive income includes foreign currency translation adjustments and related tax benefits, which have been excluded from net income including noncontrolling interests and reflected in Masimo Corporation stockholders’ equity. Net Income Per Share Basic net income per share attributable to Masimo Corporation stockholders is computed by dividing net income attributable to Masimo Corporation stockholders by the weighted-average number of shares outstanding during each reporting period. Diluted net income per share attributable to Masimo Corporation stockholders is computed by dividing the net income attributable to Masimo Corporation stockholders by the weighted-average number of shares and potential shares outstanding during each reporting period, if the effect of potential shares is dilutive. Potential shares include the incremental shares of stock issuable upon the assumed exercise of stock options and the expected vesting of stock awards as calculated under the treasury stock method. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , weighted options to purchase 0.7 million , 5.7 million and 7.2 million shares of common stock, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive. For the year ended January 2, 2016 , certain restricted stock units (RSUs) are considered contingently issuable shares as their vesting is contingent upon the occurrence of certain future events. These events have not occurred and are not considered probable of occurring as of January 2, 2016 . Therefore, 0.4 million of weighted average shares have been excluded from the calculation of potential shares. For additional information with respect to these RSUs, please see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements. The computation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share data): Year ended January 2, January 3, December 28, Net income attributable to stockholders of Masimo Corporation: Net income including noncontrolling interest $ 81,500 $ 74,363 $ 55,721 Net income (loss) attributable to the noncontrolling interes

Variable Interest Entities (VIE

Variable Interest Entities (VIEs)	12 Months Ended
	Jan. 02, 2016
Variable Interest Entity [Abstract]
Variable Interest Entities (VIEs)	Variable Interest Entity (VIE) The Company follows authoritative guidance for the consolidation of its VIE, which requires an enterprise to determine whether its variable interest gives it a controlling financial interest in a VIE. Determination about whether an enterprise should consolidate a VIE is required to be evaluated continuously as changes to existing relationships or future transactions may result in consolidating or deconsolidating the VIE. Changes in the noncontrolling interest for the consolidated VIE for each period are presented in the accompanying consolidated statements of equity. Cercacor Laboratories, Inc. (Cercacor) Cercacor is an independent entity spun off from the Company to its stockholders in 1998. Joe Kiani, the Company’s Chairman and Chief Executive Officer, is also the Chairman and Chief Executive Officer of Cercacor. In addition, Jack Lasersohn, a member of the Company’s board of directors (Board), was also a member of the Cercacor board of directors until April 2, 2015. The Company is a party to a Cross-Licensing Agreement with Cercacor, which was most recently amended and restated effective January 1, 2007 (the Cross-Licensing Agreement), that governs each party’s rights to certain intellectual property held by the two companies. Under the Cross-Licensing Agreement, the Company granted Cercacor an exclusive, perpetual and worldwide license, with sublicense rights, to use all Masimo SET ® owned by the Company, including all improvements on this technology, for the monitoring of non-vital signs measurements and to develop and sell devices incorporating Masimo SET ® for monitoring non-vital signs measurements in any product market in which a product is intended to be used by a patient or pharmacist rather than a professional medical caregiver. The Company refers to this market as the Cercacor Market. The Company also granted Cercacor a non-exclusive, perpetual and worldwide license, with sublicense rights, to use all Masimo SET ® for the measurement of vital signs in the Cercacor Market. The Company exclusively licenses from Cercacor the right to make and distribute products in the professional medical caregiver markets, which the Company refers to as the Masimo Market, that utilize rainbow ® technology for certain noninvasive measurements, including carbon monoxide, methemoglobin, fractional arterial oxygen saturation and hemoglobin. During the year ended December 28, 2013, the Company exercised its right to license from Cercacor five additional non-vital sign measurements for $0.5 million each, or $2.5 million in the aggregate. As the result of new data in fiscal 2015 related to these five additional non-vital sign measurements, the Company and Cercacor terminated these licenses during fiscal 2015 and Cercacor agreed to refund the amounts previously paid by the Company for these licenses. The Company also has the option to obtain exclusive licenses to make and distribute products that utilize rainbow ® technology for the monitoring of other non-vital signs measurements, including blood glucose, in product markets where the product is intended to be used by a professional medical caregiver. To date, the Company has developed and commercially released devices that measure carbon monoxide, methemoglobin and hemoglobin using licensed rainbow ® technology. The Company also markets certain other rainbow technologies, such as rainbow Acoustic Monitoring ® , the rights to which are owned by the Company and for which no licensing fee is paid to Cercacor. The Company’s license to rainbow ® technology for these parameters in these markets is exclusive on the condition that the Company continues to pay Cercacor royalties on its products incorporating rainbow ® technology, subject to certain minimum aggregate royalty thresholds, and that the Company uses commercially reasonable efforts to develop or market products incorporating the licensed rainbow ® technology. The royalty rate is up to 10% of the rainbow ® royalty base, which includes handhelds, tabletop and multiparameter devices. Handheld products incorporating rainbow ® technology will carry up to a 10% royalty rate. For other products, only the proportional amount attributable to that portion of the Company’s devices used to monitor non-vital signs measurements, rather than to monitor vital signs measurements, and sensors and accessories for measuring only non-vital signs parameters, will be included in the 10% rainbow ® royalty base. Effective January 2009, for multiparameter devices, the rainbow ® royalty base includes the percentage of the revenue based on the number of rainbow ® enabled measurements. For hospital contracts where the Company places equipment and enters into a sensor contract, the Company pays a royalty to Cercacor on the total sensor contract revenues based on the ratio of rainbow ® enabled devices to total devices. The current annual minimum aggregate royalty obligation under the license is $5.0 million . Actual aggregate royalty liabilities to Cercacor under the license were $6.7 million , $5.5 million and $5.4 million for the fiscal years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. In connection with a change in control of the Company, as defined in the Cross-Licensing Agreement, the minimum aggregate annual royalties for licensed rainbow ® measurements payable to Cercacor related to carbon monoxide, methemoglobin, fractional arterial oxygen saturation, hemoglobin and blood glucose will increase to $15.0 million , plus up to $2.0 million for other rainbow ® measurements. In February 2009, in order to accelerate the product development of an improved hemoglobin spot-check measurement device, Pronto-7 ® , the Board agreed to fund additional engineering expenses of Cercacor. Specifically, these expenses included third-party engineering materials and supplies expense as well as 50% of Cercacor’s total engineering and engineering-related payroll expenses from April 2009 through June 2010, the original anticipated completion date of this product development effort. Subsequent to July 2010, Cercacor continued to assist the Company with product development efforts and charged the Company accordingly. Beginning in 2012, the Board approved an increase in the percentage of Cercacor’s total engineering and engineering-related payroll expenses funded by the Company from 50% to 60% . During the fiscal years ended January 3, 2015 and December 28, 2013 , the expenses for these additional services, materials and supplies totaled $3.1 million and $4.1 million , respectively. This arrangement was discontinued by mutual agreement effective as of January 4, 2015. During the year ended January 2, 2016 , Cercacor completed a review of its fiscal 2014 cross-charges related to Pronto-7 ® . Based on this review, it was determined that less than 60% of Cercacor’s total engineering and engineering-related payroll expenses were attributable to the development of Pronto-7 ® , resulting in an overpayment by the Company of approximately $1.6 million . In addition, both parties also reviewed and agreed to equally share approximately $1.4 million of previously incurred engineering-related payroll expenses associated with research for a new LED sensor technology. As a result, the parties mutually agreed that Cercacor would refund $0.9 million to the Company during the third quarter of fiscal 2015. The Company has also entered into an administrative services agreement with Cercacor effective January 1, 2007 (G&A Services Agreement) that governs certain general and administrative services the Company provides to Cercacor. Amounts charged by the Company pursuant to this G&A Services Agreement amounted to $0.2 million for each of the fiscal years ended January 2, 2016 , January 3, 2015 and December 28, 2013 . In January 2015, the Company entered into a consulting services agreement (Consulting Agreement) with Cercacor that governs certain engineering consulting and clinical studies support services that Cercacor may provide to the Company from time-to-time. Expenses incurred by the Company related to this Consulting Agreement were $0.3 million for the fiscal year ended January 2, 2016 . Effective July 6, 2015, the Company and Cercacor entered into a patent transfer and licensing agreement (the Patent Agreement) pursuant to which, among other things, the Company purchased certain patents from Cercacor (the Purchased Patents) for an aggregate purchase price of $2.4 million . Pursuant to the Patent Agreement, the Company granted Cercacor an irrevocable, non-exclusive, worldwide license with respect to the products and services covered by the Purchased Patents. Pursuant to authoritative accounting guidance, Cercacor is consolidated within the Company’s financial statements for all periods presented. The Company is required to consolidate Cercacor since the Company is currently deemed to be the primary beneficiary of Cercacor’s activities. This determination is based primarily on the facts that the Company is Cercacor’s sole customer and Cercacor is currently financially dependent on the Company for funding. Accordingly, all intercompany royalties, option and license fees and other charges between the Company and Cercacor, as well as all intercompany payables and receivables, have been eliminated in consolidation. All direct engineering and clinical studies support expenses that have been incurred by Cercacor and charged to the Company, have not been eliminated and are included as research and development expense in the Company’s consolidated statements of operations. Similarly, all direct general and administrative expenses that have been incurred by the Company and charged to Cercacor are included as selling, general and administrative expense in the Company’s consolidated statements of operations. Assets of Cercacor can only be used to settle obligations of Cercacor and creditors of Cercacor have no recourse to the general credit of the Company. For the foreseeable future, the Company anticipates that it will continue to consolidate Cercacor pursuant to the current authoritative accounting guidance; however, in the event that Cercacor is no longer considered a VIE under such accounting guidance, the Company may discontinue consolidating the entity. The consolidating balance sheets as of January 2, 2016 and January 3, 2015 , and statements of operations for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 reflecting the Company, Cercacor and related eliminations (in thousands) are as follows. January 2, January 3, Consolidating Balance Sheets: Masimo Corp Cercacor Cercacor Elim Total Masimo Corp Cercacor Cercacor Elim Total ASSETS Cash and cash equivalents $ 131,554 $ 763 $ — $ 132,317 $ 133,509 $ 944 $ — $ 134,453 Accounts receivable, net 80,937 23 — 80,960 71,017 — — 71,017 Inventories 62,038 — — 62,038 69,718 — — 69,718 Prepaid income taxes 2,342 62 — 2,404 324 93 — 417 Other current assets 21,230 1,277 (1,084 ) 21,423 21,446 203 (178 ) 21,471 Deferred cost of goods sold 66,844 — — 66,844 67,485 — — 67,485 Property and equipment, net 131,877 589 — 132,466 100,730 1,222 — 101,952 Intangible assets, net 29,045 2,858 (4,347 ) 27,556 29,564 4,738 (6,531 ) 27,771 Goodwill 20,394 — — 20,394 20,979 — — 20,979 Deferred income taxes 44,320 — — 44,320 42,258 — — 42,258 Other assets 11,013 — — 11,013 7,450 2,021 (1,986 ) 7,485 Total assets $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 $ 564,480 $ 9,221 $ (8,695 ) $ 565,006 LIABILITIES Accounts payable $ 25,798 $ 67 $ — $ 25,865 $ 38,003 $ 42 $ — $ 38,045 Accrued compensation 37,715 700 — 38,415 32,985 615 — 33,600 Accrued liabilities 45,142 164 (1,084 ) 44,222 24,492 227 (178 ) 24,541 Income taxes payable 2,565 212 — 2,777 6,350 212 — 6,562 Deferred revenue 21,280 376 (376 ) 21,280 21,067 500 (500 ) 21,067 Current portion of capital lease obligations 74 — — 74 79 — — 79 Deferred revenue 298 3,406 (3,406 ) 298 453 6,031 (6,031 ) 453 Long term debt 185,071 — — 185,071 125,145 — — 125,145 Other liabilities 7,964 57 — 8,021 9,634 125 (1,986 ) 7,773 EQUITY Common stock 50 14 (14 ) 50 52 11 (11 ) 52 Treasury stock (340,873 ) (100 ) 100 (340,873 ) (185,906 ) (100 ) 100 (185,906 ) Additional paid-in capital 332,417 842 (842 ) 332,417 288,686 491 (491 ) 288,686 Accumulated other comprehensive loss (4,739 ) — — (4,739 ) (2,093 ) — — (2,093 ) Retained earnings (deficit) 288,832 (166 ) (106 ) 288,560 205,533 1,067 (1,340 ) 205,260 Total Masimo Corporation stockholders’ equity 275,687 590 (862 ) 275,415 306,272 1,469 (1,742 ) 305,999 Noncontrolling interest — — 297 297 — — 1,742 1,742 Total equity 275,687 590 (565 ) 275,712 306,272 1,469 — 307,741 Total liabilities and equity $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 $ 564,480 $ 9,221 $ (8,695 ) $ 565,006 Year ended Year ended Year ended Consolidating Statements of Operations: Masimo Cercacor Cercacor Total Masimo Cercacor Cercacor Total Masimo Corp Cercacor Cercacor Elim Total Total revenue $ 630,111 $ 6,910 $ (6,910 ) $ 630,111 $ 586,643 $ 5,970 $ (5,970 ) $ 586,643 $ 547,245 $ 5,732 $ (5,732 ) $ 547,245 Cost of goods sold 226,788 — (6,660 ) 220,128 201,334 — (5,470 ) 195,864 193,775 — (5,357 ) 188,418 Gross profit 403,323 6,910 (250 ) 409,983 385,309 5,970 (500 ) 390,779 353,470 5,732 (375 ) 358,827 Operating expenses: Selling, general and administrative 250,627 2,348 (250 ) 252,725 238,674 2,842 (500 ) 241,016 213,374 2,470 (375 ) 215,469 Research and development 50,292 6,325 — 56,617 53,449 3,132 — 56,581 51,762 3,869 — 55,631 Litigation settlement, award and/or defense costs (19,609 ) — — (19,609 ) (8,010 ) (2,321 ) — (10,331 ) 8,010 — — 8,010 Total operating expenses 281,310 8,673 (250 ) 289,733 284,113 3,653 (500 ) 287,266 273,146 6,339 (375 ) 279,110 Operating income (loss) 122,013 (1,763 ) — 120,250 101,196 2,317 — 103,513 80,324 (607 ) — 79,717 Non-operating expense (income) 3,910 (571 ) 566 3,905 1,505 (33 ) — 1,472 3,991 — — 3,991 Income (loss) before provision for income taxes 118,103 (1,192 ) (566 ) 116,345 99,691 2,350 — 102,041 76,333 (607 ) — 75,726 Provision for income taxes 34,803 42 — 34,845 27,173 505 — 27,678 17,952 2,053 — 20,005 Net income (loss) including noncontrolling interests 83,300 (1,234 ) (566 ) 81,500 72,518 1,845 — 74,363 58,381 (2,660 ) — 55,721 Net (loss) income attributable to noncontrolling interests — — (1,800 ) (1,800 ) — — 1,845 1,845 — — (2,660 ) (2,660 ) Net income (loss) attributable to Masimo Corporation stockholders $ 83,300 $ (1,234 ) $ 1,234 $ 83,300 $ 72,518 $ 1,845 $ (1,845 ) $ 72,518 $ 58,381 $ (2,660 ) $ 2,660 $ 58,381

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jan. 02, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company’s Chief Executive Officer is also the Chairman of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation), a non-profit organization which was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. The Company’s Chief Financial Officer is also a Director of the Masimo Foundation. During the fiscal years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company contributed approximately $6.3 million , $2.8 million and $0.1 million , respectively, to the Masimo Foundation. The Company’s Chief Executive Officer is also the Chairman of the Patient Safety Movement Foundation, a non-profit organization which was founded in 2013 to work with hospitals, medical technology companies and patient advocates to unite the healthcare ecosystem and eliminate the more than 200,000 U.S. preventable hospital deaths that occur every year by 2020. The Company’s Chief Financial Officer is also the Treasurer and Secretary of the Patient Safety Movement Foundation. During the fiscal years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company contributed approximately $220 , $500,000 and $0 , respectively, and Cercacor Laboratories, the Company’s VIE, contributed approximately $25,000 , $25,000 and $25,000 , respectively, to the Patient Safety Movement Foundation. The Company’s Chief Executive Officer is also the Chairman of the Patient Safety Movement Coalition, a not-for-profit social welfare organization which was founded in 2013 to promote patient safety legislation. The Company’s Chief Financial Officer is also the Secretary of the Patient Safety Movement Coalition. During the fiscal years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company contributed approximately $10,000 , $10,000 and $100,000 , respectively, to the Patient Safety Movement Coalition. The Company’s Chief Executive Officer was appointed to the board of directors for Atheer Labs (Atheer), which is working with the Company on the development of next generation Root ® applications. During the fiscal years ended, January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company incurred approximately $200,000 , $0 and $0 , respectively, in license fees owed to Atheer. The Company’s Chief Executive Officer was appointed to the board of directors of Children’s Hospital of Orange County and CHOC Children’s at Mission Hospital (collectively, CHOC), two non-profit hospitals that are devoted exclusively to caring for children. During the fiscal years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company contributed approximately $1,500 , $26,500 and $76,000 , respectively, to CHOC.

Inventories

Inventories	12 Months Ended
	Jan. 02, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): January 2, January 3, Raw materials $ 25,781 $ 33,056 Work-in-process 4,337 6,020 Finished goods 31,920 30,642 Total $ 62,038 $ 69,718 Finished goods inventory held by distributors was $2.9 million and $3.6 million as of January 2, 2016 and January 3, 2015 , respectively.

Other Current Assets (Notes)

Other Current Assets (Notes)	12 Months Ended
	Jan. 02, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets consist of the following (in thousands): January 2, January 3, Prepaid expenses $ 9,930 $ 9,816 Royalties receivable 7,200 7,200 Employee loans and advances 320 385 Other current assets 3,973 4,070 Total other current assets $ 21,423 $ 21,471

Property and Equipment

Property and Equipment	12 Months Ended
	Jan. 02, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net consists of the following (in thousands): January 2, January 3, Building and building improvements $ 78,877 $ 30,678 Machinery and equipment 42,460 38,588 Land 23,738 22,894 Computer equipment 15,023 13,035 Tooling 13,079 12,317 Leasehold improvements 7,734 9,912 Furniture and office equipment 8,885 4,864 Demonstration units 973 972 Vehicles 45 45 Construction-in-progress 7,124 25,731 Total property and equipment 197,938 159,036 Accumulated depreciation and amortization (65,472 ) (57,084 ) Total $ 132,466 $ 101,952 In June 2015, the Company, through a wholly owned subsidiary, completed the purchase of its previously leased 90,000 square foot manufacturing, office and warehouse facility located in New Hampshire (the Property). The total purchase price of the Property, inclusive of closing costs and amounts allocable to certain intangible assets and the termination of the existing lease, was $8.5 million , of which $0.7 million was recorded to land and $5.7 million was recorded to building and improvements. During the year ended January 2, 2016 , the Company completed construction of certain renovations to its new corporate headquarters and research and development facility in Irvine, California, resulting in the occupancy of approximately 108,000 of additional square feet of office and engineering lab space and the reclassification of approximately $41.7 million from construction-in-progress to building and improvements. Approximately $4.0 million and $20.3 million of construction-in-progress relates to the initial purchase and subsequent renovation costs for the new corporate headquarters and research and development facility as of January 2, 2016 and January 3, 2015 , respectively. Approximately $4.2 million and $10.0 million of construction costs related to this facility are included in accounts payable as of January 2, 2016 and January 3, 2015 , respectively. The Company capitalized approximately $0.4 million and $0.6 million of interest expense related to the purchase and renovation of this facility during the years ended January 2, 2016 and January 3, 2015 , respectively. The gross value of furniture and office equipment under capital lease obligations was $0.4 million and $0.6 million as of January 2, 2016 and January 3, 2015 , respectively, with accumulated depreciation of $0.3 million and $0.4 million as of January 2, 2016 and January 3, 2015 , re spectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Jan. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, net consist of the following (in thousands): January 2, January 3, Cost Patents $ 21,619 $ 20,459 Customer relationships 7,669 7,669 Acquired technology 5,580 5,580 Trademarks 3,944 3,562 Capitalized software development costs 2,539 2,066 Other 2,541 1,450 Total cost 43,892 40,786 Accumulated amortization Patents (7,743 ) (6,649 ) Customer relationships (2,620 ) (1,853 ) Acquired technology (1,950 ) (1,392 ) Trademarks (1,106 ) (866 ) Capitalized software development costs (1,647 ) (1,440 ) Other (1,270 ) (815 ) Total accumulated amortization (16,336 ) (13,015 ) Net carrying amount $ 27,556 $ 27,771 Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2016 $ 3,461 2017 3,318 2018 3,189 2019 2,922 2020 2,805 Thereafter 11,861 Total $ 27,556

Goodwill

Goodwill	12 Months Ended
	Jan. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Changes in the goodwill balance were as follows (in thousands): January 2, January 3, Goodwill, beginning of period $ 20,979 $ 22,793 Foreign currency translation adjustment (585 ) (1,814 ) Goodwill, end of period $ 20,394 $ 20,979

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Jan. 02, 2016
Other Liabilities Disclosure [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following (in thousands): January 2, January 3, Accrued customer rebates, fees and reimbursements $ 11,857 $ 11,645 Accrued legal fees 5,785 5,117 Accrued donations 5,612 300 Accrued arbitration award 5,391 — Accrued taxes 5,263 4,372 Accrued stock repurchases 4,815 — Accrued warranty 1,222 1,416 Accrued other 4,277 1,691 Total accrued liabilities $ 44,222 $ 24,541

Long-Term Debt (Notes)

Long-Term Debt (Notes)	12 Months Ended
	Jan. 02, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-Term Debt Long term debt consists of the following (in thousands): January 2, January 3, Revolving line of credit $ 185,000 $ 125,000 Long term portion of capital lease obligations acquisition 71 145 Total long term debt $ 185,071 $ 125,145 The Company incurred total interest expense of $2.4 million , $0.6 million and $0.1 million for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. Revolving Line of Credit In September 2014, the Company executed Amendment No. 1 to Credit Agreement (Amendment 1) with JPMorgan Chase Bank, N.A., as Administrative Agent and a Lender (JPMorgan), and Bank of America, N.A., as a Lender (BofA). Amendment 1 modified the credit agreement dated April 23, 2014, by and among the Company, the Lenders from time to time party thereto and JPMorgan (the Credit Agreement and, collectively with Amendment 1, the Amended Credit Agreement). The Amended Credit Agreement increased the Company’s borrowing capacity by $125.0 million , bringing the total available borrowing capacity to $250.0 million . As of January 2, 2016 , the Amended Credit Agreement had outstanding Eurodollar draws totaling $185.0 million at an effective interest rate of 1.6875% and the Company was in compliance with all of its covenants and conditions. Subsequent Event On January 8, 2016, the Company entered into an Amended and Restated Credit Agreement (Restated Credit Facility) with JPMorgan, as Administrative Agent and a Lender, BofA, as Syndication Agent and a Lender, Citibank, N.A., as Documentation Agent and a Lender, and various other Lenders (collectively, the Lenders). The Restated Credit Facility amends and restates the Amended Credit Agreement and provides for up to $450.0 million in borrowings in multiple currencies, with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $550.0 million in the future. The Restated Credit Facility also provides for a sublimit of up to $50.0 million for the issuance of letters of credit and a sublimit of $125.0 million in specified foreign currencies. All unpaid principal under the Restated Credit Facility will become due and payable on January 8, 2021. Borrowings under the Restated Credit Facility will be deemed, at the Company’s election, either: (i) an ABR draw, which bears interest at the Alternate Base Rate (ABR), as defined below, plus a spread (ABR Spread) based upon a Company leverage ratio, or (ii) a Eurodollar draw, which bears interest at the Adjusted LIBO Rate (as defined below), plus a spread (Eurodollar Spread) based upon a Company leverage ratio. The ABR Spread is 0.125% to 1.0% and the Eurodollar Spread is 1.125% to 2.0% . Subject to certain conditions, the Company may also request swingline loans from time to time (Swingline Loans) that bear interest similar to an ABR Loan. The ABR is determined by taking the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% , and (iii) the one-month Adjusted LIBO Rate plus 1.0% . The Adjusted LIBO Rate is equal to LIBOR for the applicable interest period multiplied by the statutory reserve rate for such period. The Company is obligated under the Restated Credit Facility to pay a fee ranging from 0.175% to 0.300% per annum, based upon a Company leverage ratio, with respect to any unused portion of the line of credit. This fee and any interest accrued on an ABR Loan are due and payable quarterly in arrears. Interest accrued on any Eurodollar Loan is due and payable at the end of the applicable interest period (or at each three month interval in the case of loans with interest periods greater than three months). Interest on any Swingline Loan is due and payable on the date that the Swingline Loan is required to be repaid. The Company may prepay the loans and terminate the commitments in whole at any time, without premium or penalty, subject to reimbursement of certain costs in the case of Eurodollar Loans. Pursuant to the terms of the Restated Credit Facility, the Company is subject to certain covenants, including financial covenants related to a leverage ratio and an interest charge coverage ratio, and other customary negative covenants. The Company’s obligations under the Restated Credit Facility are secured by substantially all of the Company’s personal property, including all equity interests in domestic subsidiaries and first-tier foreign subsidiaries.

Other Liabilities, Long-Term

Other Liabilities, Long-Term	12 Months Ended
	Jan. 02, 2016
Other Liabilities Disclosure [Abstract]
Other Liabilities, Long-Term	Other Liabilities, Long-Term Other long-term liabilities consist of the following (in thousands): January 2, January 3, Unrecognized tax benefit $ 7,747 $ 6,812 Deferred tax liability, long-term (included in Other) 194 — Other 80 961 Total other liabilities, long-term $ 8,021 $ 7,773 The unrecognized tax benefit relates to the Company’s long-term portion of tax liability. Authoritative guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. See Note 17 to these consolidated financial statements for further details.

Equity

Equity	12 Months Ended
	Jan. 02, 2016
Equity [Abstract]
Equity	Equity Series A Junior Participating Preferred Stock and Stockholder Rights Plan In November 2007, the Company authorized and declared a dividend of one preferred stock purchase right (Right) for each outstanding share of its common stock to stockholders of record at the close of business on November 26, 2007 (the Record Date) pursuant to a Rights Agreement, dated as of November 9, 2007, with Computershare Trust Company, N.A., as Rights Agent (the Rights Agreement). In addition, one Right was issued with each share of common stock that became outstanding after the Record Date. Each Right entitled the registered holder to purchase from the Company one thousandth of one share of the Company’s Series A junior participating preferred stock, par value $0.001 per share, at a purchase price equal to $136.00 per Right, subject to adjustment. Subsequent Event On February 12, 2016, the Company entered into an amendment to the Rights Agreement (the Rights Amendment). The Rights Amendment accelerated the expiration of the Rights from the close of business on February 8, 2017 to the close of business on February 16, 2016, and had the effect of terminating the Rights Agreement on that date. Upon the termination of the Rights Agreement, all of the Rights distributed to holders of the Company’s common stock pursuant to the Rights Agreement expired. Stock Repurchase Program In February 2013, the Board authorized the repurchase of up to 6.0 million shares of common stock under a stock repurchase program (2013 Repurchase Program) which was expected to continue for a period of up to 36 months from the effective date of the program unless it is terminated earlier by the Board. In October 2014, the Board increased the number of shares of the Company’s common stock authorized for repurchase by 3.0 million shares, bringing the total number of shares of the Company’s common stock authorized under such repurchase program to 9.0 million . The 2013 Repurchase Program plan terminated pursuant to its terms in September 2015 when all of the authorized 9.0 million shares had been repurchased. In September 2015, the Board authorized a new stock repurchase program, whereby the Company may purchase up to 5.0 million shares of its common stock over a period of up to three years (2015 Repurchase Program). The 2015 Repurchase Program may be carried out at the discretion of a committee comprised of the Company’s Chief Executive Officer and Chief Financial Officer through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. The total remaining shares authorized for repurchase under the 2015 Repurchase Program approximated 4.4 million shares as of January 2, 2016 . The Company expects to fund the 2015 Repurchase Program through its available cash, future cash from operations, funds available under its Restated Credit Facility or other potential sources of capital. The following table provides a summary of the Company’s stock repurchase activities during the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 (in thousands, except per share amounts): Years Ended January 2, January 3, December 28, Shares repurchased 4,148 4,455 1,000 Average cost per share $ 37.36 $ 23.00 $ 19.79 Value of shares repurchased $ 154,967 $ 102,453 $ 19,791

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Jan. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation Stock Plans On August 7, 2007, in connection with the Company’s initial public offering, the 2007 Stock Incentive Plan (2007 Plan) became effective. Under the 2007 Plan, 3.0 million shares of common stock plus shares available under prior equity incentive plans, including shares that become available under the 2007 Plan due to forfeitures at prices not less than the fair market value of the Company’s common stock on the date the option is granted, were initially reserved for future issuance. The options generally vest annually over five years using the straight-line method, unless otherwise provided, and expire ten years from the date of grant. Options forfeited under any Stock Incentive Plan are automatically added to the share reserve of the 2007 Plan. Pursuant to the “evergreen” provision contained in the 2007 Plan, approximately 1.7 million additional shares of common stock were added to the share reserve of the 2007 Plan on each of January 4, 2015, December 29, 2013, December 30, 2012, January 1, 2012, January 3, 2010 and January 4, 2009, which represented 3% of the Company’s total shares outstanding as of each of the years ended January 3, 2015, December 28, 2013, December 29, 2012, December 31, 2011, January 2, 2010 and January 3, 2009. No shares were added to the share reserve for the year ended January 1, 2011. The Company may terminate the 2007 Plan at any time. If not terminated sooner, the 2007 Plan will automatically terminate on August 7, 2017. Beginning in 2015, equity awards granted to employees include a mix of stock options and RSUs. With the exception of the RSUs granted to the Company’s Chairman and Chief Executive Officer in connection with the amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements for further details), the RSUs generally vest in 25% increments annually over a four-year period. The number of shares issued on each date that an RSU vests is net of any shares withheld to satisfy the minimum statutory tax withholdings that are paid in cash by the Company to the appropriate taxing authorities. Stock-Based Award Activity A summary of stock option activity, as well as the number and weighted-average exercise price of stock options issued and outstanding under all stock plans, is presented below (in thousands, except for exercise price): Year ended Year ended Year ended Shares Average Shares Average Exercise Price Shares Average Options outstanding, beginning of period 9,956 $ 23.59 8,911 $ 22.76 8,368 $ 22.78 Granted 914 36.18 1,887 24.83 1,653 21.17 Canceled (218 ) 24.33 (416 ) 24.46 (795 ) 24.53 Expired — — — — — — Exercised (1,450 ) 19.54 (426 ) 10.95 (315 ) 10.49 Options outstanding, end of period 9,202 $ 25.46 9,956 23.59 8,911 $ 22.76 Options exercisable, end of period 5,609 $ 24.72 5,859 $ 23.63 5,188 $ 22.69 The number and weighted-average exercise price of outstanding and exercisable stock options segregated by exercise price ranges (in thousands, except range of exercise prices and remaining contractual life) were as follows: Year ended Year ended Options Outstanding Options Exercisable Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Average Remaining Contractual Life Number of Options Number of Options Average Remaining Contractual Life Number of Options $2.75 to $4.00 — 0 — 67 0.31 67 $4.01 to $12.00 304 0.69 304 639 1.44 639 $12.01 to $16.00 450 1.37 450 539 2.37 539 $16.01 to $23.98 3,698 6.59 1,867 4,256 7.58 1,580 $23.99 to $28.99 2,033 5.72 1,297 2,426 6.54 1,320 $29.00 to $31.99 1,822 4.20 1,429 1,744 4.46 1,435 $32.00 to $38.30 215 7.06 75 97 3.87 92 $38.31 to $41.51 560 7.10 187 188 3.40 187 $41.52 to $43.76 120 9.87 — — 0 — Total 9,202 5.56 5,609 9,956 5.94 5,859 As of January 2, 2016 , the weighted-average remaining contractual term of options outstanding with an exercise price less than the closing price of the Company’s common stock was 5.5 years. As of January 3, 2015 , the weighted-average remaining contractual term of options exercisable with an exercise price less than the closing price of the Company’s common stock was 4 years. A summary of unvested RSU award activity is presented below (in thousands) except for per share amounts: Year ended Year ended Year ended Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value RSUs outstanding, beginning of period — $ — — $ — — $ — Granted 2,703 41.45 — — — — Canceled — — — — — — Expired — — — — — — Vested — — — — — — RSUs outstanding, end of period 2,703 $ 41.45 — $ — — $ — Approximately 2.7 million of the total RSUs granted during the year ended January 2, 2016 were awarded to the Company’s Chairman and Chief Executive Officer in connection with the amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements for further details). At January 2, 2016 , an aggregate of 15.9 million shares of common stock were reserved for future issuance under the 2007 Plan and prior equity incentive plans of which 4.0 million shares were available for future grant under the 2007 Plan. Valuation of Stock-Based Award Activity The fair value of each RSU award is determined based on the closing price of the Company’s common stock on the grant date. The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s share-based compensation plans. The range of assumptions used and the resulting weighted-average fair value of stock options granted at the date of grant were as follows: Year ended Year ended Year ended Risk-free interest rate 1.3% to 1.9% 1.4% to 1.9% 0.7% to 1.8% Expected term 5.5 years to 5.7 years 5.1 years to 5.5 years 5.1 years to 5.5 years Estimated volatility 32.0% to 37.4% 31.7% to 36.5% 31.2% to 39.6% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $12.20 per share $7.85 per share $7.53 per share Risk-free interest rate. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with a remaining term approximately equal to the expected term of the Company’s stock options. Expected term. The expected term represents the average period that the Company’s stock options are expected to be outstanding. The expected term is based on both the Company’s specific historical option exercise experience, as well as expected term information available from a peer group of companies with a similar vesting schedule. Estimated volatility. The estimated volatility is the amount by which the Company’s share price is expected to fluctuate during a period. The Company’s estimated volatilities for 2015, 2014 and 2013 are based on historical and implied volatilities of the Company’s share price over the expected term of the option. Expected dividends. The Board may from time to time declare, and the Company may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law. Any determination to declare and pay dividends will be made by the Board and will depend upon the Company’s results of operations, earnings, capital requirements, financial condition, business prospects, contractual restrictions and other factors deemed relevant by the Board. In the event a dividend is declared, there is no assurance with respect to the amount, timing or frequency of any such dividends. The dividend declared in 2012 was deemed to be a special dividend and there is no assurance that special dividends will be declared again during the expected term. Based on this uncertainty and unknown frequency, for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , no dividend rate was used in the assumptions to calculate the share-based compensation expense. Estimated forfeiture rate. The Company is required to develop an estimate of the number of stock options and RSUs that will be forfeited due to employee turnover. Adjustments in the estimated forfeiture rates can have a significant effect on the Company’s reported share-based compensation, as it recognizes the cumulative effect of the rate adjustments for all expense amortization in the period the estimated forfeiture rates were adjusted. The Company estimates and adjusts forfeiture rates based on a periodic review of recent forfeiture activity and expected future employee turnover. Adjustments in the estimated forfeiture rates could also cause changes in the amount of expense that it recognizes in future periods. As of January 2, 2016 , there was $22.7 million of total unrecognized share-based compensation expense related to unvested options granted or modified on or after January 1, 2006. That expense is expected to be recognized over a weighted-average period of 3.3 years as of January 2, 2016 . The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire award. The total fair value of all options that vested during fiscal years 2015 , 2014 and 2013 aggregated $10.4 million , $11.2 million and $12.3 million , respectively. As of January 2, 2016 , there was $0.1 million of total unrecognized compensation expense related to unvested RSUs that is expected to be recognized over a weighted average period of 1 year, excluding any contingent compensation expense related to certain RSUs that were granted to the Company’s Chairman and Chief Executive Officer in connection with the amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements for further details). The aggregate intrinsic value is calculated as the difference between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of January 2, 2016 was $147.8 million . The aggregate intrinsic value of options exercisable, with an exercise price less than the closing price of the Company’s common stock, as of January 2, 2016 was $94.2 million . The aggregate intrinsic value of options exercised during the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 was $26.4 million , $6.6 million and $4.2 million , respectively. The total income tax benefit recognized in the consolidated statements of operations for share-based compensation expense was $3.7 million , $3.7 million and $3.9 million for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. The following table presents the total share-based compensation expense that is included in each functional line item of the consolidated statements of operations (in thousands): Year ended Year ended Year ended Cost of goods sold $ 348 $ 436 $ 354 Selling, general and administrative 8,139 8,812 9,407 Research and development 2,338 1,757 1,913 Total $ 10,825 $ 11,005 $ 11,674

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jan. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company leases certain facilities in North America, Europe and Asia under operating lease agreements expiring at various dates through December 2020 . Some of these leases contain predetermined price escalations and in some cases renewal options. The Company recognizes the lease costs using a straight line method based on total lease payments. As of January 2, 2016 and January 3, 2015 , rent expense accrued in excess of the amount paid aggregated $0.2 million and $0.4 million , respectively, and is classified in other liabilities in the accompanying consolidated balance sheets. The Company also leases automobiles in the U.S. and Europe that are classified as operating leases and expire at various dates through December 2019 . The majority of these leases are non-cancelable. The Company also has outstanding capital leases for office equipment that are non-cancelable. Future minimum lease payments, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): Fiscal year Operating Capital Total 2016 $ 3,633 $ 88 $ 3,721 2017 3,223 82 3,305 2018 3,278 8 3,286 2019 2,482 8 2,490 2020 1,033 3 1,036 Thereafter — — — Total $ 13,649 $ 189 $ 13,838 On January 26, 2016, the Company entered into the Third Amendment to Lease with The Irvine Company LLC (Third Amendment) relating to the rental of space in a building located in Irvine, California. Pursuant to the terms of the Third Amendment, the Company’s current lease of certain premises will be terminated in exchange for the Company’s leasing of approximately 70,700 square feet of space in another building in Irvine, California, located near the Company’s new corporate headquarters (New Premises). The Third Amendment also extends the term of the original lease to the end of the month in which the ten -year anniversary of the date of commencement (Commencement Date) of the lease for the New Premises occurs. The Commencement Date will occur following the completion of certain improvements to the New Premises, which the Company currently expects to be on or before November 10, 2016. Rental expense related to operating leases for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 was $4.8 million , $6.1 million and $5.1 million , respectively. Included in the future capital lease payments as of January 2, 2016 is interest aggregating less than $0.1 million . Employee Retirement Savings Plan In 1996, the Company adopted the Masimo Retirement Savings Plan (the Plan), which is a 401(k) plan covering all of the Company’s full-time U.S. employees who meet certain eligibility requirements. In general, the Company matches an employee’s contribution up to 3% of the employee’s compensation, subject to a maximum amount. The Company may also contribute to the Plan on a discretionary basis. The Company contributed $1.8 million , $1.7 million and $1.5 million to the Plan for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively, all in the form of matching contributions. Employment and Severance Agreements On November 4, 2015, the Company entered into an Amended and Restated Employment Agreement with Joe Kiani, the Company’s Chairman and Chief Executive Officer (the Restated Employment Agreement). The Restated Employment Agreement, among other things, eliminates the tax gross-up payments, “single trigger” change in control payments and certain survival provisions, as well as phases out the fixed annual stock option grants guaranteed to Mr. Kiani under his previous employment agreement. Pursuant to the terms of the Restated Employment Agreement, upon a “Qualifying Termination” (as defined in the Restated Employment Agreement including a change in control), Mr. Kiani will be entitled to receive a cash severance benefit equal to two times the sum of his then-current base salary and the average annual bonus paid to Mr. Kiani during the immediately preceding three years. In addition, upon a Qualifying Termination prior to 2018, Mr. Kiani will receive 2.7 million shares of common stock (subject to adjustment for recapitalizations, stock splits, stock dividends and the like) upon the vesting of certain RSUs granted to Mr. Kiani in connection with the Restated Employment Agreement, and an additional cash payment of $35.0 million related to a Non-Competition and Confidentiality Agreement between Mr. Kiani and the Company (collectively, the Special Payment). For any Qualifying Termination occurring on or after January 1, 2018, the number of shares to be issued to Mr. Kiani pursuant to the RSUs and the cash payment will each be reduced by 10% of the original amount each year so that after December 31, 2026, no Special Payment will be due to Mr. Kiani upon a Qualifying Termination. As of January 2, 2016 , the expense related to the Special Payment that would be recognized in the Company’s consolidated financial statements upon the occurrence of a Qualifying Termination under the Restated Employment Agreement approximated $146.9 million . As of January 2, 2016 , the Company had severance plan participation agreements with seven of its executive officers. The participation agreements (Participation Agreements) are governed by the terms and conditions of the Company’s 2007 Severance Protection Plan, which became effective on July 19, 2007 and was amended effective December 31, 2008. Under the Participation Agreements, each executive officer may be entitled to receive certain salary, equity, medical and life insurance benefits if he is terminated by the Company without cause or terminates his employment for good reason under certain circumstances. The executive officers are also required to provide the Company with six months advance notice of their resignation under certain circumstances. Purchase Commitments Pursuant to contractual obligations with vendors, the Company had $35.9 million of purchase commitments as of January 2, 2016 , which are expected to be fulfilled within one year. These purchase commitments were made for certain inventory items to secure better pricing and to ensure the Company will have raw materials when necessary. Other Contractual Commitments In the normal course of business, the Company may provide bank guarantees to support government hospital tenders in certain foreign jurisdictions. As of January 2, 2016 , there were approximately $0.3 million of such unsecured bank guarantees outstanding, the majority of which relates to performance obligations with respect to certain government tenders. Concentrations of Risk The Company is exposed to credit loss for the amount of cash deposits with financial institutions in excess of federally insured limits. As of January 2, 2016 , the Company had approximately $57.2 million of bank balances, of which $2.4 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries deposit insurance organizations. The Company invests its excess cash deposits in money market and time deposit accounts with major financial institutions. As of January 2, 2016 , the Company had $20.1 million in money market funds and $55.0 million in bank time deposits that were not guaranteed by the U.S. federal government. While the Company and its contract manufacturers rely on sole source suppliers for certain components, steps have been taken to minimize the impact of a shortage or stoppage of shipments, such as maintaining a safety stock of inventory and designing products that may be easily modified to use a different component. However, there can be no assurance that a shortage or stoppage of shipments of the materials or components that the Company purchases will not result in a delay in production or adversely affect the Company’s business. The Company’s ability to sell its products to U.S. hospitals depends in part on its relationships with Group Purchasing Organizations (GPOs). Many existing and potential customers for the Company’s products become members of GPOs. GPOs negotiate pricing arrangements and contracts, sometimes exclusively, with medical supply manufacturers and distributors, and these negotiated prices are made available to a GPO’s affiliated hospitals and other members. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , revenue from the sale of the Company’s pulse oximetry products to customers affiliated with GPOs amounted to $337.4 million , $309.9 million and $287.9 million , respectively. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company had sales through two just-in-time distributors, which in total represented approximately 14.6% and 11.7% , 14.0% and 11.1% , and 13.2% and 10.7% of total revenue, respectively. As of January 2, 2016 , these two just-in-time distributors represented 5.5% and 5.3% of the accounts receivable balance, respectively. As of January 3, 2015 , these two just-in-time distributors represented 5.0% and 8.8% of the accounts receivable balance, respectively. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company recorded $30.8 million , $29.9 million and $29.8 million , respectively, in royalty revenues from Medtronic pursuant to a settlement agreement and amendments. In exchange for these royalty payments, the Company provided Medtronic the ability to ship certain products with a covenant not to sue Medtronic as long as Medtronic abides by the terms of the agreement. The current royalty rate is 7.75% and the amended agreement can be terminated by Medtronic upon sixty days written notice. Litigation On February 3, 2009, the Company filed a patent infringement suit in the U.S. District Court for the District of Delaware against Philips Electronics North America Corporation and Philips Medizin Systeme Böblingen GmbH (collectively, Philips) related to Philips’ FAST pulse oximetry technology and certain of Philips’ patient monitors. On June 15, 2009, Philips answered the Company’s complaint and Philips Electronics North America Corporation filed antitrust and patent infringement counterclaims against the Company, as well as counterclaims seeking declaratory judgments of invalidity of the patents asserted by the Company against Philips. On July 9, 2009, the Company filed its answer denying Philips’ counterclaims and asserting various defenses. The Company also asserted counterclaims against Philips for fraud, intentional interference with prospective economic advantage and for declaratory judgments of noninfringement and invalidity with respect to the patents asserted by Philips against the Company. Philips later added a claim for infringement of one additional patent. Subsequently, the Court bifurcated Philips’ antitrust claims and its patent misuse defense, as well as stayed the discovery phase on those claims pending trial in the patent case. In addition, the Company asserted additional patents in 2012, and the Court ordered that these patents and some of the originally asserted patents be tried in a second phase. On May 23, 2014, Philips filed a motion for leave to amend its answer and counterclaims to allege inequitable conduct. The Court granted Philips’ motion for leave to amend. A jury trial commenced on September 15, 2014 with respect to two of the Company’s patents and one of Philips’ patents. On October 1, 2014, the jury determined that both of the Company’s patents were valid and that the damages amount for Philips’ infringement was $466.8 million . The jury also determined that the Company did not infringe the Philips patent. Philips has indicated that it intends to appeal the damages award once a final judgment has been rendered in the case. On September 18, 2015, the Court set a schedule for the trial related to the second phase patents and a schedule for the trial related to Philips’ antitrust counterclaims and patent misuse defense, with both trials scheduled to take place in the first quarter of 2017. On November 16, 2015, the Company asserted three antitrust claims against Philips. On December 9, 2015, the Court dismissed with prejudice Philips’ sole remaining patent infringement claim against the Company. On January 4, 2016, the Court granted Philips’ motion to strike the Company’s antitrust counterclaims, ruling that the Company must bring these claims in a separate litigation. The Company believes that it has good and substantial defenses to the remaining antitrust claims asserted by Philips. The Company is unable to determine whether any loss will occur or to estimate the range of such potential loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Annual Report on Form 10-K. Furthermore, there is no guarantee that the Company will prevail in this suit or receive any damages or other relief if it does prevail. On December 21, 2012, the Company filed a suit against Mindray DS USA, Inc. and Shenzhen Mindray Bio-Medical Electronics Co, Ltd. (Shenzhen Mindray) in the U.S. District Court for the Central District of California alleging patent infringement, breach of contract and other claims. On March 6, 2013, Shenzhen Mindray filed a complaint against the Company under the Anti-Unfair Competition Law of the People’s Republic of China (PRC) before the Shenzhen Municipal Intermediate People’s Court. On December 10, 2013, the Company filed a lawsuit against Mindray DS USA, Inc., Shenzhen Mindray and Mindray Medical International Ltd. in the Superior Court of New Jersey alleging breach of contract and related claims, which was removed to the U.S. District Court for the District of New Jersey. Shenzhen Mindray filed a complaint in the Shenzhen Intermediate People’s Court against the Company and Shenzhen Comen Medical Instruments on February 6, 2015, alleging infringement of Chinese Patent No. 00808884.5. Additionally, a separate lawsuit was filed against Masimo Sweden AB (Masimo Sweden) on the same day and in the same court alleging infringement of Chinese Patent No. 200710305061.9. On November 16, 2015, the Company entered into a Settlement and Covenant Not to Sue Agreement (the Settlement Agreement) with Shenzhen Mindray Biomedical Electronics Co., Ltd. and certain of its affiliates (collectively, Mindray). The Settlement Agreement settled each of the claims and legal proceedings between the Company and Mindray described above. Pursuant to the Settlement Agreement, Mindray paid the Company an aggregate of $25.0 million . The Settlement Agreement also contains requirements for the purchase of certain Company products by Mindray. In addition, Mindray assigned certain of its patents to the Company. Certain covenants not to sue for patent infringement were also exchanged. In the U.S. District Court for the Central District of California, Mindray dismissed its claims and counterclaims against the Company on November 19, 2015 and the Company dismissed its claims and counterclaims against Mindray on January 8, 2016. The Company and Mindray dismissed their claims and counterclaims in the U.S. District Court for the District of New Jersey on January 11, 2016. The Chinese courts dismissed the patent cases against the Company and Masimo Sweden on December 8, 2015 and the anti-competition case on December 22, 2015. In April 2011, the Company was informed by the United States Attorney’s Office for the Central District of California, Civil Division, that a qui tam complaint had been filed against the Company in the U.S. District Court for the Central District of California by three of the Company’s former physician office sales representatives. The qui tam complaint alleged, among other things, that the Company’s noninvasive hemoglobin products failed to meet their accuracy specifications, and that the Company misled the U.S. Food and Drug Administration (FDA) and customers regarding the accuracy of the products. In November 2011, the United States declined to intervene in the case, and in October 2013, the District Court granted summary judgment in favor of the Company. The former sales representatives appealed the District Court’s decision and an argument on the appeal was held in the Ninth Circuit Court of Appeals on February 1, 2016. On February 19, 2016, the Ninth Circuit Court of Appeals affirmed the summary judgment of the District Court. In September 2011, two of the same former sales representatives filed employment-related claims against the Company in arbitration also stemming from their allegations regarding the Company’s noninvasive hemoglobin products. On January 16, 2014, the Company was notified that the arbitrator awarded the plaintiffs approximately $5.4 million in damages (the Arbitration Award), which the Company accrued in fiscal 2013. In addition, the Company’s insurance carrier notified the Company that it believed certain defense costs related to the arbitration may no longer be reimbursable in view of the arbitration decision. As a result, the Company also accrued a liability of $2.6 million in fiscal 2013 for the costs estimated to have been paid by the insurance carrier. The Company challenged the arbitration award in the U.S. District Court for the Central District of California, and on April 3, 2014, the District Court vacated the award. Accordingly, the Company reversed the $8.0 million charge in the quarter ended March 29, 2014. The former sales representatives appealed the District Court’s decision, and the appeal argument was held in the Ninth Circuit Court of Appeals on February 1, 2016. On February 19, 2016, the Ninth Circuit Court of Appeals reversed the decision of the District Court vacating the award, and remanded the case to the District Court with instructions to confirm the Arbitration Award. As a result, the Company reinstated the $5.4 million charge for the arbitration award that was previously reversed, plus approximately $0.7 million of estimated interest, as of January 2, 2016. However, the Company has not reinstated the $2.6 million charge for defense-related costs previously reimbursed by the insurance company based upon its current assessment of this matter. The Company is unable to predict the final outcome or the final amount of any resulting loss related to this matter. Therefore, the actual loss, if any, could differ from the amount that the Company has currently estimated and accrued. On January 2, 2014, a putative class action complaint was filed against the Company in the U.S. District Court for the Central District of California by Physicians Healthsource, Inc. The complaint alleges that the Company sent unsolicited facsimile advertisements in violation of the Junk Fax Protection Act of 2005 and related regulations. The complaint seeks $500 for each alleged violation, treble damages if the District Court finds the alleged violations to be knowing, plus interest, costs and injunctive relief. On April 14, 2014, the Company filed a motion to stay the case pending a decision on a related petition filed by the Company with the Federal Communications Commission (FCC). On May 22, 2014, the District Court granted the motion and stayed the case pending a ruling by the FCC on the petition. On October 30, 2014, the FCC granted some of the relief and denied some of the relief requested in the Company’s petition. Both parties appealed the FCC’s decision on the petition. On November 25, 2014, the District Court granted the parties’ joint request that the stay remain in place pending a decision on the appeal. The Company believes it has good and substantial defenses to the claims, but there is no guarantee that the Company will prevail. The Company is unable to determine whether any loss will ultimately occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Annual Report on Form 10-K. On January 31, 2014, an amended putative class action complaint was filed against the Company in the U.S. District Court for the Northern District of Alabama by and on behalf of two participants in the Surfactant, Positive Pressure, and Oxygenation Randomized Trial at the University of Alabama. On April 21, 2014, a further amended complaint was filed adding a third participant. The complaint alleges product liability and negligence claims in connection with pulse oximeters the Company modified and provided at the request of study investigators for use in the trial. On August 13, 2015, the U.S. District Court for the Northern District of Alabama granted summary judgment in favor of the Company on all claims. The plaintiffs have appealed the U.S. District Court for the Northern District of Alabama’s decision. The Company is unable to determine whether any loss will ultimately occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Annual Report on Form 10-K. On October 21, 2015, Medtronic plc (Medtronic) filed three separate inter partes review petitions (the Petitions) with the Patent Trial and Appeal Board (the PTAB) of the U.S. Patent and Trademark Office (PTO), challenging several of the claims of U.S. Patent Nos. 7,496,393 (the ’393 Patent), titled “Signal processing apparatus,” and 8,560,034 (the ’034 Patent), also titled “Signal processing apparatus,” which are owned by the Company. A patentability trial will commence if the PTAB decides to institute the inter partes review proceedings after considering the Petitions and the Company’s preliminary response to the Petitions. Medtronic has the right to stop paying royalties to the Company, subject to certain notice requirements, under its existing settlement agreement with the Company, and has informed the Company that it will terminate the settlement covenants and stop paying royalties to the Company when it feels it has reached an appropriate point in the process. The Company has opposed the requests to institute proceedings relating to the Petitions, including on the basis that Medtronic is estopped from challenging the patentability of the ’034 patent, because the claims were previously the subject of an interference proceeding between the Company and Medtronic’s subsidiary, Covidien plc, in which the PTO awarded the claimed subject matter to the Company. If the PTAB institutes the proceedings, the Company intends to defend the ’393 Patent and the ’034 Patent. The Company believes it has good and substantial responses to the Petitions, but there is no guarantee that the Company will prevail. The Company is unable to determine whether any loss will occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Annual Report on Form 10-K. From time to time, the Company may be involved in other litigation and investigations relating to claims and matters arising out of its operations in the normal course of business. The Company believes that it currently is not a party to any other legal proceedings which, individually or in the aggregate, would have a material adverse effect on its consolidated financial position, results of operations or cash flows.

Segment Information and Enterpr

Segment Information and Enterprise Reporting	12 Months Ended
	Jan. 02, 2016
Segment Reporting [Abstract]
Segment Information and Enterprise Reporting	Segment Information and Enterprise Reporting The Company’s chief decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in a single reporting segment, specifically noninvasive patient monitoring solutions and related products. The Company does not assess the performance of its geographic regions on other measures of income or expense, such as depreciation and amortization, operating income or net income including noncontrolling interests. In addition, the Company’s assets are primarily located in the U.S. The following schedule presents an analysis of the Company’s product revenue based upon the geographic area to which the product was shipped (in thousands): Year ended Year ended Year ended Geographic area by destination North and South America $ 438,336 73.1 % $ 398,066 71.5 % $ 378,894 73.2 % Europe, Middle East and Africa 105,323 17.6 100,747 18.1 83,338 16.1 Asia and Australia 55,675 9.3 57,951 10.4 55,197 10.7 Total Product Revenue $ 599,334 100.0 % $ 556,764 100.0 % $ 517,429 100.0 % United States $ 421,628 $ 380,232 $ 361,630 The Company’s consolidated long-lived assets (total non-current assets excluding deferred taxes, goodwill and intangible assets) by geographic area are: Year ended Year ended Year ended Long-lived assets by geographic area United States $ 203,553 96.8 % $ 170,117 96.2 % $ 87,228 93.4 % International 6,770 3.2 % 6,805 3.8 6,173 6.6 Total $ 210,323 100.0 % $ 176,922 100.0 % $ 93,401 100.0 % The Company possesses licenses from the U.S. Treasury Department’s Office of Foreign Assets Control for conducting business with certain countries identified by the State Department as state sponsors of terrorism. Although the Company does not have any subsidiaries, affiliates, offices, investments or employees in any country identified as a state sponsor of terrorism, the Company has conducted an immaterial amount of business with distributors in Iran, Sudan and Syria relating to the sale of products during the prior two fiscal years. The Company does not believe that these activities are material to its business, financial condition or results of operations.

Income Taxes

Income Taxes	12 Months Ended
	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The components of income before provision for income taxes are as follows (in thousands): Year ended Year ended Year ended United States $ 87,762 $ 69,282 $ 50,782 Foreign 28,583 32,759 24,944 Total $ 116,345 $ 102,041 $ 75,726 The following table presents the current and deferred provision (benefit) for income taxes (in thousands): Year ended Year ended Year ended Current: Federal $ 31,983 $ 22,553 $ 24,488 State 2,388 2,736 2,426 Foreign 2,448 2,709 1,704 36,819 27,998 28,618 Deferred: Federal (900 ) 342 (7,281 ) State (1,206 ) (811 ) (970 ) Foreign 132 149 (362 ) (1,974 ) (320 ) (8,613 ) Total $ 34,845 $ 27,678 $ 20,005 Included in the fiscal 2015 , 2014 and 2013 current tax provisions are net increases of $0.6 million , $1.1 million and $0.3 million , respectively, for tax and accrued interest related to uncertain tax positions for each fiscal year. The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Year ended Year ended Year ended Statutory regular federal income tax rate 35.0 % 35.0 % 35.0 % State provision, net of federal benefit 0.7 1.2 1.3 Nondeductible items 1.7 1.3 0.9 Foreign tax rate differential (6.3 ) (8.2 ) (9.8 ) Tax credits (1.7 ) (1.5 ) (3.5 ) Change in federal valuation allowance 0.4 (0.1 ) 3.0 Other 0.2 (0.6 ) (0.5 ) Total 30.0 % 27.1 % 26.4 % On December 18, 2015, President Obama signed The Protecting Americans from Tax Hikes Act into law, which reinstated and permanently extended the federal research tax credit (R&D Tax Credit) retroactively back to January 1, 2015. On December 19, 2014, President Obama signed The Tax Increase Prevention Act of 2014 into law, which retroactively extended the R&D Tax Credit from January 1, 2014 through December 31, 2014. On January 2, 2013, President Obama signed The American Taxpayer Relief Act of 2012 (2012 Tax Act) into law, which reinstated the R&D Tax Credit retroactively from January 1, 2012 through December 31, 2013. As a result of the 2012 Tax Act, the Company recorded additional R&D Tax Credits during fiscal 2013 for amounts generated in fiscal 2012 of approximately $1.0 million . As a result of Cercacor’s continuing operating losses, Cercacor management determined that there was insufficient positive evidence to support a more likely than not realization of its remaining deferred tax assets. As a result, Cercacor recorded a federal valuation allowance of approximately $2.3 million against its deferred tax assets in fiscal 2013. The components of the deferred tax assets are as follows (in thousands): January 2, January 3, Deferred tax assets: Tax credits $ 4,683 $ 3,260 Deferred revenue 3,994 4,943 Accrued liabilities 20,817 14,723 Share-based compensation 20,688 21,594 Other 2,416 3,191 Total 52,598 47,711 Valuation allowance (4,196 ) (3,365 ) Total deferred tax assets 48,402 44,346 Deferred tax liabilities: State taxes and other (4,276 ) (2,088 ) Total deferred tax liabilities (4,276 ) (2,088 ) Net deferred tax assets $ 44,126 $ 42,258 As of January 2, 2016 , the Company has $0.1 million of net operating losses from various states, which will begin to expire in 2028, all of which will be recorded in equity when realized. The Company has state research and development tax credits of $4.5 million that will carry forward indefinitely. Additionally, the Company has $0.4 million of investment tax credit on research and development expenditures from its operations in Canada that will begin to expire in 2030. The Company believes that it is more likely than not that the deferred tax assets related to these carryforwards will be realized. In making this determination, the Company considered all available positive and negative evidence, including scheduled reversals of liabilities, projected future taxable income, tax planning strategies and recent financial performance. Cercacor, the Company’s VIE, is not included in the Company’s consolidated federal or state income tax returns. At January 2, 2016 , Cercacor has federal research and development tax credit carryforwards of $0.7 million that will begin to expire in 2032 and state research and development tax credit carryforwards of $1.0 million , which will carry forward indefinitely. After considering all positive and negative evidence, including Cercacor’s continuing operating losses, Cercacor management believes that there is insufficient positive evidence to support a more likely than not realization of these carryforwards, as well as the rest of its net deferred tax assets and, therefore, has recorded a full valuation allowance against these carryforwards as well, as the rest of Cercacor’s net deferred tax assets. As a result of certain business and employment actions undertaken by the Company, income earned in a certain European country is subject to a reduced tax rate through 2018 as the Company has met certain employment thresholds. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the estimated income tax benefit related to such business arrangement was $1.3 million , $1.6 million and $1.2 million , respectively, and favorably impacted net income per diluted share by $0.02 , $0.03 and $0.02 , respectively. During the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company recorded a tax benefit of $5.1 million , $0.2 million and $0.7 million , respectively, from the exercise of non-qualified stock options and incentive stock options as a reduction of its income tax liability and an increase in equity. The tax benefit results from the difference between the fair value of the Company’s stock on the exercise dates and the exercise price of the option. As of January 2, 2016 , the Company has not provided for deferred income taxes on approximately $110.3 million of cumulative undistributed earnings of certain foreign subsidiaries, because such earnings are intended to be permanently reinvested in those operations. If such earnings were distributed, the Company would accrue estimated additional income tax expense of $34.5 million . The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): Year ended Year ended Unrecognized tax benefits (gross), beginning of period $ 8,024 $ 6,630 Increase from tax positions in prior period 131 830 Increase from tax positions in current period 1,616 958 Settlements — — Lapse of statute of limitations (896 ) (394 ) Unrecognized tax benefits (gross), end of period $ 8,875 $ 8,024 The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $7.2 million and $6.7 million as of January 2, 2016 and January 3, 2015 , respectively. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next 12 months due to the expiration of statutes of limitation and audit settlements. However, due to the uncertainty surrounding the timing of these events, an estimate of the change within the next 12 months cannot be made at this time. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , the Company had accrued $1.1 million , $0.9 million and $0.9 million , respectively, for the payment of interest. The Company conducts business in multiple jurisdictions, and as a result, one or more of the Company’s subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for years through 2011. The Company’s 2012 income tax return is currently under examination by the U.S. Internal Revenue Service. All material state, local and foreign income tax matters have been concluded for years through 2008. The Company does not believe that the results of any tax authority examination would have a significant impact on its financial statements.

Quarterly Financial Data (unaud

Quarterly Financial Data (unaudited)	12 Months Ended
	Jan. 02, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Quarterly Financial Data (unaudited) The healthcare business in the United States and overseas is typically subject to quarterly fluctuations in hospital and other alternative care admissions. Although this did not occur during fiscal year 2015, the Company’s third fiscal quarter revenues have historically experienced a sequential decline from its second fiscal quarter revenues. The Company believes this is primarily due to the summer vacation season during which people tend to avoid elective procedures. Another factor affecting the seasonality of the Company’s quarterly revenues is the traditional “flu season” that often increases hospital and acute care facility admissions in the first and fourth calendar quarters. Because the Company’s non-sales variable operating expenses often do not fluctuate in the same manner as its quarterly product sales, this may cause fluctuations in the Company’s quarterly operating income that are disproportionate to fluctuations in its quarterly revenue. The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2015 and 2014 (in thousands, except per share data): Quarters Ended Fiscal 2015 April 4, July 4, October 3, January 2, Total revenue $ 154,537 $ 155,726 $ 152,575 $ 167,273 Gross profit 103,105 102,901 102,232 101,745 Operating income 27,377 27,841 28,140 36,892 Net income attributable to Masimo Corporation stockholders 20,523 19,351 19,325 24,101 Net income per share attributable to Masimo Corporation stockholders: Basic $ 0.39 $ 0.38 $ 0.38 $ 0.48 Diluted $ 0.38 $ 0.36 $ 0.36 $ 0.46 Quarters Ended Fiscal 2014 March 29, June 28, September 27, January 3, Total revenue $ 139,814 $ 140,923 $ 144,118 $ 161,788 Gross profit 92,301 93,095 96,224 109,159 Operating income 30,193 18,405 22,268 32,647 Net income attributable to Masimo Corporation stockholders 22,632 13,802 14,863 21,221 Net income per share attributable to Masimo Corporation stockholders: Basic $ 0.40 $ 0.25 $ 0.28 $ 0.40 Diluted $ 0.39 $ 0.24 $ 0.27 $ 0.40

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts (Notes)	12 Months Ended
	Jan. 02, 2016
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	MASIMO CORPORATION VALUATION AND QUALIFYING ACCOUNTS Years ended January 2, 2016, January 3, 2015 and December 28, 2013 (in thousands) Description Balance at beginning of period Additions charged to expense and other accounts Amounts charged against reserve Balance at end of period Year ended January 2, 2016 Allowance for doubtful accounts $ 1,890 $ 397 $ (320 ) $ 1,967 Sales returns, allowance and reserves 472 2,621 (2,383 ) 710 Valuation allowance on deferred tax asset 3,365 831 — 4,196 Year ended January 3, 2015 Allowance for doubtful accounts 1,833 583 (526 ) 1,890 Sales returns, allowance and reserves 429 1,832 (1,789 ) 472 Valuation allowance on deferred tax asset 3,563 — (198 ) 3,365 Year ended December 28, 2013 Allowance for doubtful accounts 1,956 728 (851 ) 1,833 Sales returns, allowance and reserves 516 1,881 (1,968 ) 429 Valuation allowance on deferred tax asset 2,441 3,163 (2,041 ) 3,563

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jan. 02, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (VIEs) in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Fiscal Periods	Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 weeks while a 53 week fiscal year includes three quarters of 13 weeks and one quarter of 14 weeks. The Company’s last 53 week fiscal year was fiscal year 2014. Fiscal year 2015 is a 52 week fiscal year. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted.
Use of Estimates	Use of Estimates The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate accruals, valuation of the Company’s stock options, goodwill valuation, deferred taxes and any associated valuation allowances, distributor channel inventory, royalty revenues, deferred revenue, uncertain income tax positions, litigation costs and related accruals. Actual results could differ from such estimates.
Reclassification	Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to current period presentation.
Fair Value Measurements	Fair Value Measurements Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1-Quoted prices in active markets for identical assets or liabilities. • Level 2-Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3-Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect the fair value option under this guidance as to specific assets or liabilities. There were no transfers between level 1, level 2 and level 3 inputs during the years ended January 2, 2016 or January 3, 2015 . The Company carries cash and cash equivalents at cost which approximates fair value. As of January 2, 2016 and January 3, 2015 , the Company did not have any short-term investments.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments that are readily convertible into known amounts of cash, to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of trade receivables recorded upon recognition of revenue for product revenues, reduced by reserves for estimated bad debts and returns. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. Collateral is not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using a standard cost method, which approximates FIFO (first in, first out) and includes material, labor and overhead. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory that has a market price less than the carrying value in inventory.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 39 years Building improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Land is not depreciated and construction in progress is not depreciated until placed in service. Normal repair and maintenance costs are expensed as incurred, whereas significant improvements that materially increase values or extend useful lives are capitalized and depreciated over the remaining estimated useful lives of the related assets. Upon sale or retirement of depreciable assets, the related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss on the sale or retirement is recognized in income. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , depreciation and amortization expense of property and equipment was $11.8 million , $9.1 million and $8.3 million , respectively.
Intangible Assets	Intangible Assets Intangible assets consist primarily of patents, trademarks, software development costs, customer relationships and acquired technology. Costs related to patents and trademarks, which include legal and application fees, are capitalized and amortized over the estimated useful lives using the straight-line method. Patent and trademark amortization commences once final approval of the patent or trademark has been obtained. Patent costs are amortized over the lesser of 10 years or the patent’s remaining legal life, which assumes renewals, and trademark costs are amortized over 17 years, and their associated amortization cost is included in selling, general and administrative expense in the accompanying consolidated statements of operations. For intangibles purchased in an asset acquisition or business combination, which mainly include patents, trademarks, customer relationships and acquired technology, the useful life is determined in the same manner as noted above. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , amortization of intangible assets was $4.2 million , $3.7 million and $3.1 million , respectively. As of January 2, 2016 and January 3, 2015 , the total costs of patents not yet amortizing was $5.4 million and $6.4 million , respectively. As of January 2, 2016 and January 3, 2015 , the total costs of trademarks not yet amortizing was $0.9 million and $0.8 million , respectively. For the years ended January 2, 2016 and January 3, 2015 , total renewal costs capitalized for patents and trademarks was $0.7 million and $0.6 million , respectively. As of January 2, 2016 , the weighted-average number of years until the next renewal was one year for patents and five years for trademarks. The Company’s policy is to renew its patents and trademarks. Costs to renew intangibles are capitalized and amortized over the remaining useful life of the intangible. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. In accordance with authoritative accounting guidance, costs related to the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability. For each of the years ended January 2, 2016 and January 3, 2015 , the Company capitalized $0.5 million of software development costs. The Company did not capitalize any software development costs for the year ended December 28, 2013 . The capitalized costs are amortized over the estimated life of the products of seven years. The Company amortized $0.2 million for each of the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 . The Company had unamortized software development costs of $0.9 million and $0.6 million at January 2, 2016 and January 3, 2015 , respectively, which is included within intangible assets, net, on the consolidated balance sheets.
Impairment of Goodwill and Intangible assets	Impairment of Goodwill and Intangible assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment for each of its reporting units, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macroeconomic, industry-specific and company-specific factors, including: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the first step of the two-step impairment test by comparing the fair value of the reporting unit, determined using future projected discounted operating cash flows, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, goodwill is considered impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of goodwill. The Company also has the option to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test. The annual impairment test is performed during the fourth fiscal quarter. The Company reviews identifiable intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of goodwill, intangible assets or other long-lived assets was recorded during the years ended January 2, 2016 , January 3, 2015 or December 28, 2013 .
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method, under which the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss and tax credit carryforwards. Tax positions that meet a more-likely-than-not recognition threshold are recognized in the first reporting period that it becomes more-likely-than-not such tax position will be sustained upon examination. A tax position that meets this more-likely-than-not recognition threshold is recorded at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Previously recognized income tax positions that fail to meet the recognition threshold in a subsequent period are derecognized in that period. Differences between actual results and the Company’s assumptions, or changes in the Company’s assumptions in future periods, are recorded in the period they become known. The Company records potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. As a multinational corporation, the Company is subject to complex tax laws and regulations in various jurisdictions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation, evolution of regulations and court rulings. Therefore, the actual liability for U.S. or foreign taxes may be materially different from the Company’s estimates, which could result in the need to record additional liabilities or potentially to reverse previously recorded tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is recorded against any deferred tax assets when, in the judgment of management, it is more likely than not that all or part of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods and tax planning strategies.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue from the sale of products or services when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. In the case of the license or sale of software that does not function together with hardware components to provide the essential functionality of the hardware, revenue is recognized pursuant to the software revenue recognition guidance. The Company derives the majority of its revenue from four primary sources: (i) direct sales under long-term sensor purchase agreements with end-user hospitals where the Company provides up-front monitoring equipment at no up-front charge in exchange for a multi-year sensor purchase commitment, (ii) other direct sales of noninvasive monitoring solutions to end-user hospitals, emergency medical response organizations and other direct customers; (iii) sales of noninvasive monitoring solutions to distributors who then typically resell to end-user hospitals, emergency medical response organizations and other direct customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company’s embedded software technology into their multiparameter monitoring devices. The Company enters into agreements to sell its noninvasive monitoring solutions and services, sometimes as part of multiple deliverable arrangements that include various combinations of products and services. While the majority of the Company’s sales transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation and analysis is sometimes required to determine the appropriate accounting, including: (i) how the arrangement consideration should be allocated among the deliverables when multiple deliverables exist, (ii) when to recognize revenue on the deliverables, and (iii) whether undelivered elements are essential to the functionality of the delivered elements. Changes in judgments on these assumptions and estimates could materially impact the timing of revenue recognition. In the case of multiple deliverable arrangements, the authoritative guidance provides a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence (VSOE) of fair value, (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE of fair value is defined as the price charged when the same element is sold separately. VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. TPE generally does not exist for the majority of the Company’s products. The objective of ESP is to determine the price at which the Company would transact a sale if the product was sold on a stand-alone basis. In the absence of VSOE and TPE, the Company determines ESP for its products by considering multiple factors including, but not limited to, features and functionality of the product, geographies, type of customer, contractual prices pursuant to Group Purchasing Organization (GPO) contracts, the Company’s pricing and discount practices, and market conditions. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. Most of the Company’s products in a multiple deliverable arrangement qualify as separate units of accounting. In the case of the Company’s monitoring equipment containing embedded Masimo SET ® or rainbow SET ™ software, the Company has determined that the hardware and software components function together to deliver the equipment’s essential functionality and, therefore, represent a single deliverable. However, software deliverables, such as rainbow ® parameter software, which do not function together with hardware components to provide the equipment’s essential functionality, are accounted for under software revenue recognition guidance. The revenue for these multiple-element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the revenue recognition accounting guidance for arrangements with multiple deliverables. Sales under long-term sensor purchase contracts are generally structured such that the Company agrees to provide at no up-front charge certain monitoring-related equipment, software, installation, training and/or warranty support in exchange for the hospital’s agreement to purchase sensors over the term of the agreement, which generally ranges from three to six years. The sensors are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. The Company generally does not recognize any revenue when the monitoring-related equipment and software are delivered to the hospitals, but rather recognizes revenue for these delivered elements on a pro-rata basis as the sensors are delivered under the long-term purchase commitment, when installation and training are complete. Accordingly, the cost of the monitoring-related equipment initially placed at the hospitals is deferred and amortized to cost of goods sold over the life of the underlying long-term sensor purchase contract. Some of the Company’s long-term sensor contracts also contain provisions for certain payments to be made directly to the end-user hospital customer at the inception of the arrangement. These payments are generally treated as prepaid discounts which are deferred and amortized on a straight-line basis as contra-revenue over the life of the underlying long-term sensor purchase contract. Many of the Company’s distributors purchase sensor products that they then resell to end-user hospitals that are typically fulfilling their purchase obligations to the Company under such end-user hospital’s long-term sensor purchase commitments. Upon shipment to the distributor, revenue is deferred until the distributor ships the product to the Company’s end-user customers based on an estimate of the inventory held by these distributors at the end of the accounting period. The Company also earns revenue from the sale of integrated circuit boards and other products, as well as from rainbow ® parameter software licenses, to OEMs under various agreements. Revenue from the sale of products to the OEMs is generally recognized at the time of shipment. Revenue related to software licenses to OEMs is generally recognized upon shipment of the OEM’s product to its customers, as represented to the Company by the OEM. The Company also provides certain customers with the ability to purchase sensors under rebate programs. Under these programs, the customers may earn rebates based on their purchasing activity. The Company estimates and provides allowances for these programs at the time of sale as a reduction to revenue. In general, customers do not have a right of return for credit or refund. However, the Company allows returns under certain circumstances. At the end of each period, the Company estimates and accrues for these returns as a reduction to revenue and accounts receivable. The Company estimates returns based on several factors, including contractual limitations and past returns history. The majority of the Company’s royalty revenue arises from one agreement with Medtronic plc (Medtronic, formerly Covidien Ltd.) and is due and payable quarterly based on U.S. sales of certain Medtronic products. An estimate of these royalty revenues is recorded quarterly in the period earned based on the prior quarter’s historical results, adjusted for any new information or trends known to management at the time of estimation. This estimated revenue is adjusted prospectively when the Company receives the Medtronic royalty report, approximately sixty days after the end of the previous quarter.
Taxes Collected From Customers and Remitted to Governmental Authorities	Taxes Collected From Customers and Remitted to Governmental Authorities Pursuant to authoritative guidance, the Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities.
Share-Based Compensation	Share-Based Compensation The Company expenses the estimated fair value of employee stock options and similar awards based on the fair value of the stock option on the date of grant, in accordance with the current authoritative accounting guidance. In calculating the fair value on the date of grant, the Company uses the Black-Scholes option pricing model which requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their stock options before exercising them, the estimated volatility of the Company’s stock price over the expected term and the number of options that will ultimately be forfeited prior to meeting their vesting requirements. The cost is recognized over the period during which an employee is required to provide services in exchange for the stock option, which is usually the vesting period. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire stock option. Options granted prior to January 1, 2006 were accounted for using the intrinsic value method and using the minimum value method for its pro forma disclosures, unless such options were modified, repurchased or canceled. The cash flows related to the reduction of income taxes paid as a result of the deduction triggered by employee exercise of stock options granted or modified prior to January 1, 2006 continue to be presented within operating cash flows.
Shipping and Handling Costs and Revenue	Shipping and Handling Costs and Revenue All shipping and handling costs are expensed as incurred and are recorded as a component of cost of goods sold in the accompanying consolidated statements of operations. Charges for shipping and handling billed to customers are included as a component of product revenue in accordance with authoritative accounting guidance.
Product Warranty	Product Warranty The Company provides a warranty against defects in material and workmanship for a period ranging from six months to sixteen months, depending on the product type. In the case of long-term sales agreements, the Company typically warranties the products for the term of the agreement, which ranges from three to six years. In traditional sales activities, including direct and OEM sales, the Company establishes an accrual for the estimated costs of warranty at the time of revenue recognition. Estimated warranty expenses are recorded as an accrued liability, with a corresponding provision to cost of goods sold. Revenue related to any extended warranty is recognized over the life of the contract, while the product warranty costs related to the long-term sales agreements are expensed as incurred.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. These costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Advertising costs for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 were $10.7 million , $10.7 million and $9.6 million , respectively.
Research and Development	Research and Development Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities.
Foreign Currency Translation	Foreign Currency Translation The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has several foreign sales support subsidiaries that maintain foreign offices, of which the largest are in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company transacts with foreign customers in currencies other than the U.S. Dollar and, in doing so, experiences realized and unrealized foreign currency gains or losses on its foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions. Realized and unrealized foreign currency gains or losses are included as a component of non-operating expense within the Company’s consolidated statements of operations as incurred and are converted to U.S. Dollars at average exchange rates for the respective period. These transaction losses were $0.5 million , $1.0 million and $4.0 million for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. Assets and liabilities of foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated into U.S. Dollars at the rate of exchange at the balance sheet date. Statement of operations amounts are translated at the average monthly exchange rates for the respective periods. For these foreign subsidiaries whose functional currency is not the U.S. Dollar, translation gains and losses are included as a component of accumulated other comprehensive income (loss) within Masimo Corporation stockholders’ equity in the accompanying consolidated balance sheets
Comprehensive Income	Comprehensive Income Authoritative accounting guidance establishes requirements for reporting and disclosure of comprehensive income and its components. Comprehensive income includes foreign currency translation adjustments and related tax benefits, which have been excluded from net income including noncontrolling interests and reflected in Masimo Corporation stockholders’ equity.
Net Income Per Share	Net Income Per Share Basic net income per share attributable to Masimo Corporation stockholders is computed by dividing net income attributable to Masimo Corporation stockholders by the weighted-average number of shares outstanding during each reporting period. Diluted net income per share attributable to Masimo Corporation stockholders is computed by dividing the net income attributable to Masimo Corporation stockholders by the weighted-average number of shares and potential shares outstanding during each reporting period, if the effect of potential shares is dilutive. Potential shares include the incremental shares of stock issuable upon the assumed exercise of stock options and the expected vesting of stock awards as calculated under the treasury stock method. For the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , weighted options to purchase 0.7 million , 5.7 million and 7.2 million shares of common stock, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive. For the year ended January 2, 2016 , certain restricted stock units (RSUs) are considered contingently issuable shares as their vesting is contingent upon the occurrence of certain future events. These events have not occurred and are not considered probable of occurring as of January 2, 2016 . Therefore, 0.4 million of weighted average shares have been excluded from the calculation of potential shares. For additional information with respect to these RSUs, please see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements.
Segment Information	Segment Information The Company uses the “management approach” in determining reportable business segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Based on this assessment, management has determined it operates in one reportable business segment, which is comprised of patient monitoring and related products
New Accounting Pronouncement	Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17). The new standard requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The Company adopted this standard retrospectively during the fourth quarter of the fiscal year ended January 2, 2016. The effect on the consolidated balance sheet as of January 3, 2015 was a reclassification of $18.1 million from deferred income taxes, current to deferred income taxes, non-current. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16) . The new standard requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Acquirers must recognize, in the same reporting period, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard during the fourth quarter of the fiscal year ended January 2, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement June 18, 2015 EITF Meeting (ASU 2015-15). Accounting Standards Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which required the presentation of debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 provides clarity about presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements consistent with comments from the staff of the Securities and Exchange Commission (SEC) that the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this standard during the fourth quarter of the fiscal year ended January 2, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11) . The new standard requires entities using the first-in, first-out (FIFO) inventory costing method to subsequently value inventory at the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 requires prospective application and is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard during the fourth quarter of the fiscal year ended January 2, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) . The new standard requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. ASU 2015-03 requires retrospective application and represents a change in accounting principle. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company adopted this standard during the fourth quarter of the fiscal year ended January 2, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update 2015-01, Income Statement – Extraordinary and Unusual Items, (ASU 2015-01). The new standard eliminates the concept of extraordinary items from GAAP. ASU 2015-01 is effective for annual and interim fiscal reporting periods beginning after December 15, 2015, and may be applied retrospectively, with early application permitted. The Company adopted this standard during the fourth quarter of the fiscal year ended January 2, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Pending Adoption In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02) . The amended standard applies to entities in all industries and eliminates the deferral of certain consolidation standards for entities considered to be investment companies as well as modifies the consolidation analysis performed on certain types of legal entities. ASU 2015-02 is effective for annual and interim fiscal reporting periods beginning after December 15, 2015, and may be applied retrospectively, with early application permitted. The Company is continuing to evaluate the expected impact of this standard on its consolidated financial statements and will adopt this standard during the first quarter of its fiscal year ending December 31, 2016. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue (Topic 606): Revenue from Contracts with Customer (ASU 2014-09) . The new standard provides a single, principles-based five-step model to be applied to all contracts with customers while enhancing disclosures about revenue, providing additional guidance for transactions that were not previously addressed comprehensively and improving guidance for multiple-element arrangements. ASU 2014-09 will replace most existing revenue recognition guidance under GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which amended ASU 2014-09, providing for a one year deferral period for the implementation of ASU 2014-09. ASU 2014-09 will now be effective for annual and interim periods beginning on or after December 15, 2017. The Company is continuing to evaluate the expected impact of this standard on its consolidated financial statements.

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jan. 02, 2016
Accounting Policies [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands): January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 57,168 $ — $ — $ 57,168 $ 57,168 Level 1: Bank time deposits 55,000 — — 55,000 55,000 Money market funds 20,149 — — 20,149 20,149 Subtotal 75,149 — — 75,149 75,149 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 132,317 $ — $ — $ 132,317 $ 132,317 January 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 92,888 $ — $ — $ 92,888 $ 92,888 Level 1: Bank time deposits 40,500 — — 40,500 40,500 Money market funds 1,065 — — 1,065 1,065 Subtotal 41,565 — — 41,565 41,565 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 134,453 $ — $ — $ 134,453 $ 134,453
Components of Property and Equipment	Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 39 years Building improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Property and equipment, net consists of the following (in thousands): January 2, January 3, Building and building improvements $ 78,877 $ 30,678 Machinery and equipment 42,460 38,588 Land 23,738 22,894 Computer equipment 15,023 13,035 Tooling 13,079 12,317 Leasehold improvements 7,734 9,912 Furniture and office equipment 8,885 4,864 Demonstration units 973 972 Vehicles 45 45 Construction-in-progress 7,124 25,731 Total property and equipment 197,938 159,036 Accumulated depreciation and amortization (65,472 ) (57,084 ) Total $ 132,466 $ 101,952
Changes in Product Warranty Accrual	Changes in the product warranty accrual were as follows (in thousands): Year Ended January 2, January 3, December 28, Warranty accrual, beginning of period $ 1,416 $ 1,161 $ 838 Accrual for warranties issued 800 1,144 1,560 Changes in pre-existing warranties (including changes in estimates) 61 138 52 Settlements made (1,055 ) (1,027 ) (1,289 ) Warranty accrual, end of period $ 1,222 $ 1,416 $ 1,161
Computation of Basic and Diluted Net Income Per Share	The computation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share data): Year ended January 2, January 3, December 28, Net income attributable to stockholders of Masimo Corporation: Net income including noncontrolling interest $ 81,500 $ 74,363 $ 55,721 Net income (loss) attributable to the noncontrolling interest (1,800 ) 1,845 (2,660 ) Net income attributable to Masimo Corporation stockholders $ 83,300 $ 72,518 $ 58,381 Basic net income per share attributable to Masimo Corporation stockholders: Net income attributable to Masimo Corporation stockholders $ 83,300 $ 72,518 $ 58,381 Weighted-average shares outstanding - basic 51,311 54,708 56,690 Basic net income per share attributable to Masimo Corporation stockholders $ 1.62 $ 1.33 $ 1.03 Diluted net income per share attributable to Masimo Corporation stockholders: Weighted-average shares outstanding 51,311 54,708 56,690 Diluted share equivalents: stock options and RSUs 2,396 863 790 Weighted-average shares outstanding - diluted 53,707 55,571 57,480 Diluted net income per share attributable to Masimo Corporation stockholders $ 1.55 $ 1.30 $ 1.02
Supplemental Schedule of Cash Flow	Supplemental Cash Flow Information (in thousands) Year ended January 2, January 3, December 28, Cash paid during the year for: Interest (net of amounts capitalized) $ 2,293 $ 469 $ 28 Income taxes 36,194 19,863 29,979 Noncash investing and financing activities: Assets acquired under capital leases $ — $ — $ 352 Unpaid purchases of property, plant and equipment 4,371 12,155 507 Unsettled common stock repurchases 4,815 — —

Variable Interest Entities (V29

Variable Interest Entities (VIEs) (Tables)	12 Months Ended
	Jan. 02, 2016
Variable Interest Entity [Abstract]
Condensed Consolidating Schedules of Balance Sheets	The consolidating balance sheets as of January 2, 2016 and January 3, 2015 , and statements of operations for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 reflecting the Company, Cercacor and related eliminations (in thousands) are as follows. January 2, January 3, Consolidating Balance Sheets: Masimo Corp Cercacor Cercacor Elim Total Masimo Corp Cercacor Cercacor Elim Total ASSETS Cash and cash equivalents $ 131,554 $ 763 $ — $ 132,317 $ 133,509 $ 944 $ — $ 134,453 Accounts receivable, net 80,937 23 — 80,960 71,017 — — 71,017 Inventories 62,038 — — 62,038 69,718 — — 69,718 Prepaid income taxes 2,342 62 — 2,404 324 93 — 417 Other current assets 21,230 1,277 (1,084 ) 21,423 21,446 203 (178 ) 21,471 Deferred cost of goods sold 66,844 — — 66,844 67,485 — — 67,485 Property and equipment, net 131,877 589 — 132,466 100,730 1,222 — 101,952 Intangible assets, net 29,045 2,858 (4,347 ) 27,556 29,564 4,738 (6,531 ) 27,771 Goodwill 20,394 — — 20,394 20,979 — — 20,979 Deferred income taxes 44,320 — — 44,320 42,258 — — 42,258 Other assets 11,013 — — 11,013 7,450 2,021 (1,986 ) 7,485 Total assets $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 $ 564,480 $ 9,221 $ (8,695 ) $ 565,006 LIABILITIES Accounts payable $ 25,798 $ 67 $ — $ 25,865 $ 38,003 $ 42 $ — $ 38,045 Accrued compensation 37,715 700 — 38,415 32,985 615 — 33,600 Accrued liabilities 45,142 164 (1,084 ) 44,222 24,492 227 (178 ) 24,541 Income taxes payable 2,565 212 — 2,777 6,350 212 — 6,562 Deferred revenue 21,280 376 (376 ) 21,280 21,067 500 (500 ) 21,067 Current portion of capital lease obligations 74 — — 74 79 — — 79 Deferred revenue 298 3,406 (3,406 ) 298 453 6,031 (6,031 ) 453 Long term debt 185,071 — — 185,071 125,145 — — 125,145 Other liabilities 7,964 57 — 8,021 9,634 125 (1,986 ) 7,773 EQUITY Common stock 50 14 (14 ) 50 52 11 (11 ) 52 Treasury stock (340,873 ) (100 ) 100 (340,873 ) (185,906 ) (100 ) 100 (185,906 ) Additional paid-in capital 332,417 842 (842 ) 332,417 288,686 491 (491 ) 288,686 Accumulated other comprehensive loss (4,739 ) — — (4,739 ) (2,093 ) — — (2,093 ) Retained earnings (deficit) 288,832 (166 ) (106 ) 288,560 205,533 1,067 (1,340 ) 205,260 Total Masimo Corporation stockholders’ equity 275,687 590 (862 ) 275,415 306,272 1,469 (1,742 ) 305,999 Noncontrolling interest — — 297 297 — — 1,742 1,742 Total equity 275,687 590 (565 ) 275,712 306,272 1,469 — 307,741 Total liabilities and equity $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 $ 564,480 $ 9,221 $ (8,695 ) $ 565,006
Condensed Consolidating Schedules of Statements of Comprehensive Income	Year ended Year ended Year ended Consolidating Statements of Operations: Masimo Cercacor Cercacor Total Masimo Cercacor Cercacor Total Masimo Corp Cercacor Cercacor Elim Total Total revenue $ 630,111 $ 6,910 $ (6,910 ) $ 630,111 $ 586,643 $ 5,970 $ (5,970 ) $ 586,643 $ 547,245 $ 5,732 $ (5,732 ) $ 547,245 Cost of goods sold 226,788 — (6,660 ) 220,128 201,334 — (5,470 ) 195,864 193,775 — (5,357 ) 188,418 Gross profit 403,323 6,910 (250 ) 409,983 385,309 5,970 (500 ) 390,779 353,470 5,732 (375 ) 358,827 Operating expenses: Selling, general and administrative 250,627 2,348 (250 ) 252,725 238,674 2,842 (500 ) 241,016 213,374 2,470 (375 ) 215,469 Research and development 50,292 6,325 — 56,617 53,449 3,132 — 56,581 51,762 3,869 — 55,631 Litigation settlement, award and/or defense costs (19,609 ) — — (19,609 ) (8,010 ) (2,321 ) — (10,331 ) 8,010 — — 8,010 Total operating expenses 281,310 8,673 (250 ) 289,733 284,113 3,653 (500 ) 287,266 273,146 6,339 (375 ) 279,110 Operating income (loss) 122,013 (1,763 ) — 120,250 101,196 2,317 — 103,513 80,324 (607 ) — 79,717 Non-operating expense (income) 3,910 (571 ) 566 3,905 1,505 (33 ) — 1,472 3,991 — — 3,991 Income (loss) before provision for income taxes 118,103 (1,192 ) (566 ) 116,345 99,691 2,350 — 102,041 76,333 (607 ) — 75,726 Provision for income taxes 34,803 42 — 34,845 27,173 505 — 27,678 17,952 2,053 — 20,005 Net income (loss) including noncontrolling interests 83,300 (1,234 ) (566 ) 81,500 72,518 1,845 — 74,363 58,381 (2,660 ) — 55,721 Net (loss) income attributable to noncontrolling interests — — (1,800 ) (1,800 ) — — 1,845 1,845 — — (2,660 ) (2,660 ) Net income (loss) attributable to Masimo Corporation stockholders $ 83,300 $ (1,234 ) $ 1,234 $ 83,300 $ 72,518 $ 1,845 $ (1,845 ) $ 72,518 $ 58,381 $ (2,660 ) $ 2,660 $ 58,381

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Jan. 02, 2016
Inventory Disclosure [Abstract]
Components of Inventory	Inventories consist of the following (in thousands): January 2, January 3, Raw materials $ 25,781 $ 33,056 Work-in-process 4,337 6,020 Finished goods 31,920 30,642 Total $ 62,038 $ 69,718

Other Current Assets (Tables)

Other Current Assets (Tables)	12 Months Ended
	Jan. 02, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	January 2, January 3, Prepaid expenses $ 9,930 $ 9,816 Royalties receivable 7,200 7,200 Employee loans and advances 320 385 Other current assets 3,973 4,070 Total other current assets $ 21,423 $ 21,471

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jan. 02, 2016
Property, Plant and Equipment [Abstract]
Components of Property and Equipment	Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 39 years Building improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Property and equipment, net consists of the following (in thousands): January 2, January 3, Building and building improvements $ 78,877 $ 30,678 Machinery and equipment 42,460 38,588 Land 23,738 22,894 Computer equipment 15,023 13,035 Tooling 13,079 12,317 Leasehold improvements 7,734 9,912 Furniture and office equipment 8,885 4,864 Demonstration units 973 972 Vehicles 45 45 Construction-in-progress 7,124 25,731 Total property and equipment 197,938 159,036 Accumulated depreciation and amortization (65,472 ) (57,084 ) Total $ 132,466 $ 101,952

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Jan. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Intangible Assets	Intangible assets, net consist of the following (in thousands): January 2, January 3, Cost Patents $ 21,619 $ 20,459 Customer relationships 7,669 7,669 Acquired technology 5,580 5,580 Trademarks 3,944 3,562 Capitalized software development costs 2,539 2,066 Other 2,541 1,450 Total cost 43,892 40,786 Accumulated amortization Patents (7,743 ) (6,649 ) Customer relationships (2,620 ) (1,853 ) Acquired technology (1,950 ) (1,392 ) Trademarks (1,106 ) (866 ) Capitalized software development costs (1,647 ) (1,440 ) Other (1,270 ) (815 ) Total accumulated amortization (16,336 ) (13,015 ) Net carrying amount $ 27,556 $ 27,771
Estimated Amortization Expense	Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2016 $ 3,461 2017 3,318 2018 3,189 2019 2,922 2020 2,805 Thereafter 11,861 Total $ 27,556

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Jan. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill	Changes in the goodwill balance were as follows (in thousands): January 2, January 3, Goodwill, beginning of period $ 20,979 $ 22,793 Foreign currency translation adjustment (585 ) (1,814 ) Goodwill, end of period $ 20,394 $ 20,979

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Jan. 02, 2016
Other Liabilities Disclosure [Abstract]
Schedule of Accrued Liabilities	10. Accrued Liabilities Accrued liabilities consist of the following (in thousands): January 2, January 3, Accrued customer rebates, fees and reimbursements $ 11,857 $ 11,645 Accrued legal fees 5,785 5,117 Accrued donations 5,612 300 Accrued arbitration award 5,391 — Accrued taxes 5,263 4,372 Accrued stock repurchases 4,815 — Accrued warranty 1,222 1,416 Accrued other 4,277 1,691 Total accrued liabilities $ 44,222 $ 24,541

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Jan. 02, 2016
Debt Disclosure [Abstract]
Schedule of Debt	Long term debt consists of the following (in thousands): January 2, January 3, Revolving line of credit $ 185,000 $ 125,000 Long term portion of capital lease obligations acquisition 71 145 Total long term debt $ 185,071 $ 125,145

Other Liabilities, Long-Term (T

Other Liabilities, Long-Term (Tables)	12 Months Ended
	Jan. 02, 2016
Other Liabilities Disclosure [Abstract]
Components of Other Liabilities	Other long-term liabilities consist of the following (in thousands): January 2, January 3, Unrecognized tax benefit $ 7,747 $ 6,812 Deferred tax liability, long-term (included in Other) 194 — Other 80 961 Total other liabilities, long-term $ 8,021 $ 7,773

Equity Stock Repurchase Program

Equity Stock Repurchase Program Table (Tables)	12 Months Ended
	Jan. 02, 2016
Equity [Abstract]
Schedule of Stock by Class	The following table provides a summary of the Company’s stock repurchase activities during the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 (in thousands, except per share amounts): Years Ended January 2, January 3, December 28, Shares repurchased 4,148 4,455 1,000 Average cost per share $ 37.36 $ 23.00 $ 19.79 Value of shares repurchased $ 154,967 $ 102,453 $ 19,791

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Jan. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans	number and weighted-average exercise price of stock options issued and outstanding under all stock plans, is presented below (in thousands, except for exercise price): Year ended Year ended Year ended Shares Average Shares Average Exercise Price Shares Average Options outstanding, beginning of period 9,956 $ 23.59 8,911 $ 22.76 8,368 $ 22.78 Granted 914 36.18 1,887 24.83 1,653 21.17 Canceled (218 ) 24.33 (416 ) 24.46 (795 ) 24.53 Expired — — — — — — Exercised (1,450 ) 19.54 (426 ) 10.95 (315 ) 10.49 Options outstanding, end of period 9,202 $ 25.46 9,956 23.59 8,911 $ 22.76 Options exercisable, end of period 5,609 $ 24.72 5,859 $ 23.63 5,188 $ 22.69
Number and Weighted Average Exercise Price of Outstanding and Exercisable Options	The number and weighted-average exercise price of outstanding and exercisable stock options segregated by exercise price ranges (in thousands, except range of exercise prices and remaining contractual life) were as follows: Year ended Year ended Options Outstanding Options Exercisable Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Average Remaining Contractual Life Number of Options Number of Options Average Remaining Contractual Life Number of Options $2.75 to $4.00 — 0 — 67 0.31 67 $4.01 to $12.00 304 0.69 304 639 1.44 639 $12.01 to $16.00 450 1.37 450 539 2.37 539 $16.01 to $23.98 3,698 6.59 1,867 4,256 7.58 1,580 $23.99 to $28.99 2,033 5.72 1,297 2,426 6.54 1,320 $29.00 to $31.99 1,822 4.20 1,429 1,744 4.46 1,435 $32.00 to $38.30 215 7.06 75 97 3.87 92 $38.31 to $41.51 560 7.10 187 188 3.40 187 $41.52 to $43.76 120 9.87 — — 0 — Total 9,202 5.56 5,609 9,956 5.94 5,859
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	A summary of unvested RSU award activity is presented below (in thousands) except for per share amounts: Year ended Year ended Year ended Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value RSUs outstanding, beginning of period — $ — — $ — — $ — Granted 2,703 41.45 — — — — Canceled — — — — — — Expired — — — — — — Vested — — — — — — RSUs outstanding, end of period 2,703 $ 41.45 — $ — — $ —
Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant	The range of assumptions used and the resulting weighted-average fair value of stock options granted at the date of grant were as follows: Year ended Year ended Year ended Risk-free interest rate 1.3% to 1.9% 1.4% to 1.9% 0.7% to 1.8% Expected term 5.5 years to 5.7 years 5.1 years to 5.5 years 5.1 years to 5.5 years Estimated volatility 32.0% to 37.4% 31.7% to 36.5% 31.2% to 39.6% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $12.20 per share $7.85 per share $7.53 per share
Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income	The following table presents the total share-based compensation expense that is included in each functional line item of the consolidated statements of operations (in thousands): Year ended Year ended Year ended Cost of goods sold $ 348 $ 436 $ 354 Selling, general and administrative 8,139 8,812 9,407 Research and development 2,338 1,757 1,913 Total $ 10,825 $ 11,005 $ 11,674

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Jan. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Operating and Capital Leases	Future minimum lease payments, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): Fiscal year Operating Capital Total 2016 $ 3,633 $ 88 $ 3,721 2017 3,223 82 3,305 2018 3,278 8 3,286 2019 2,482 8 2,490 2020 1,033 3 1,036 Thereafter — — — Total $ 13,649 $ 189 $ 13,838

Segment Information and Enter41

Segment Information and Enterprise Reporting (Tables)	12 Months Ended
	Jan. 02, 2016
Segment Reporting [Abstract]
Analysis of Product Revenue Based upon Geographic Area Shipped	The following schedule presents an analysis of the Company’s product revenue based upon the geographic area to which the product was shipped (in thousands): Year ended Year ended Year ended Geographic area by destination North and South America $ 438,336 73.1 % $ 398,066 71.5 % $ 378,894 73.2 % Europe, Middle East and Africa 105,323 17.6 100,747 18.1 83,338 16.1 Asia and Australia 55,675 9.3 57,951 10.4 55,197 10.7 Total Product Revenue $ 599,334 100.0 % $ 556,764 100.0 % $ 517,429 100.0 % United States $ 421,628 $ 380,232 $ 361,630
Long-lived Assets by Geographic Areas	Year ended Year ended Year ended Long-lived assets by geographic area United States $ 203,553 96.8 % $ 170,117 96.2 % $ 87,228 93.4 % International 6,770 3.2 % 6,805 3.8 6,173 6.6 Total $ 210,323 100.0 % $ 176,922 100.0 % $ 93,401 100.0 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Components of Income Before Provision for Income Taxes	The components of income before provision for income taxes are as follows (in thousands): Year ended Year ended Year ended United States $ 87,762 $ 69,282 $ 50,782 Foreign 28,583 32,759 24,944 Total $ 116,345 $ 102,041 $ 75,726
Current and Deferred Provision (Benefit) for Income Taxes	The following table presents the current and deferred provision (benefit) for income taxes (in thousands): Year ended Year ended Year ended Current: Federal $ 31,983 $ 22,553 $ 24,488 State 2,388 2,736 2,426 Foreign 2,448 2,709 1,704 36,819 27,998 28,618 Deferred: Federal (900 ) 342 (7,281 ) State (1,206 ) (811 ) (970 ) Foreign 132 149 (362 ) (1,974 ) (320 ) (8,613 ) Total $ 34,845 $ 27,678 $ 20,005
Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate	The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Year ended Year ended Year ended Statutory regular federal income tax rate 35.0 % 35.0 % 35.0 % State provision, net of federal benefit 0.7 1.2 1.3 Nondeductible items 1.7 1.3 0.9 Foreign tax rate differential (6.3 ) (8.2 ) (9.8 ) Tax credits (1.7 ) (1.5 ) (3.5 ) Change in federal valuation allowance 0.4 (0.1 ) 3.0 Other 0.2 (0.6 ) (0.5 ) Total 30.0 % 27.1 % 26.4 %
Components of Deferred Tax Assets	The components of the deferred tax assets are as follows (in thousands): January 2, January 3, Deferred tax assets: Tax credits $ 4,683 $ 3,260 Deferred revenue 3,994 4,943 Accrued liabilities 20,817 14,723 Share-based compensation 20,688 21,594 Other 2,416 3,191 Total 52,598 47,711 Valuation allowance (4,196 ) (3,365 ) Total deferred tax assets 48,402 44,346 Deferred tax liabilities: State taxes and other (4,276 ) (2,088 ) Total deferred tax liabilities (4,276 ) (2,088 ) Net deferred tax assets $ 44,126 $ 42,258
Reconciliation of Total Amounts of Unrecognized Tax Benefits	The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): Year ended Year ended Unrecognized tax benefits (gross), beginning of period $ 8,024 $ 6,630 Increase from tax positions in prior period 131 830 Increase from tax positions in current period 1,616 958 Settlements — — Lapse of statute of limitations (896 ) (394 ) Unrecognized tax benefits (gross), end of period $ 8,875 $ 8,024

Quarterly Financial Data (una43

Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Jan. 02, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2015 and 2014 (in thousands, except per share data): Quarters Ended Fiscal 2015 April 4, July 4, October 3, January 2, Total revenue $ 154,537 $ 155,726 $ 152,575 $ 167,273 Gross profit 103,105 102,901 102,232 101,745 Operating income 27,377 27,841 28,140 36,892 Net income attributable to Masimo Corporation stockholders 20,523 19,351 19,325 24,101 Net income per share attributable to Masimo Corporation stockholders: Basic $ 0.39 $ 0.38 $ 0.38 $ 0.48 Diluted $ 0.38 $ 0.36 $ 0.36 $ 0.46 Quarters Ended Fiscal 2014 March 29, June 28, September 27, January 3, Total revenue $ 139,814 $ 140,923 $ 144,118 $ 161,788 Gross profit 92,301 93,095 96,224 109,159 Operating income 30,193 18,405 22,268 32,647 Net income attributable to Masimo Corporation stockholders 22,632 13,802 14,863 21,221 Net income per share attributable to Masimo Corporation stockholders: Basic $ 0.40 $ 0.25 $ 0.28 $ 0.40 Diluted $ 0.39 $ 0.24 $ 0.27 $ 0.40

Summary of Significant Accoun44

Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) - Recurring - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	$ 132,317	$ 134,453
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	132,317	134,453
Cash, Cash Equivalents	132,317	134,453
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	57,168	92,888
Accumulated Gross Unrealized Gain, before Tax		0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	57,168	92,888
Cash, Cash Equivalents	57,168	92,888
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	75,149	41,565
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	75,149	41,565
Cash, Cash Equivalents	75,149	41,565
Fair Value, Inputs, Level 1 | Bank Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	55,000	40,500
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	55,000	40,500
Cash, Cash Equivalents	55,000	40,500
Fair Value, Inputs, Level 1 | Money Market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	20,149	1,065
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	20,149	1,065
Cash, Cash Equivalents	20,149	1,065
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	0	0
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	0	0
Cash, Cash Equivalents	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	0	0
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	0	0
Cash, Cash Equivalents	$ 0	$ 0

Summary of Significant Accoun45

Summary of Significant Accounting Policies-Useful Life (Details)	12 Months Ended
	Jan. 02, 2016
Building
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	39 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Tooling
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Computer equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Computer equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years
Furniture and office equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Furniture and office equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years
Demonstration Units [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Land, Buildings and Improvements [Member] | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Land, Buildings and Improvements [Member] | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	10 years

Summary of Significant Accoun46

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions	12 Months Ended
	Jan. 02, 2016USD ($)segmentshares	Jan. 03, 2015USD ($)shares	Dec. 28, 2013USD ($)shares
Summary Of Significant Accounting Policies [Line Items]
Deferred Tax Reclass		$ 18,100,000
Short-term investments	$ 0	0
Money market funds	20,100,000
Accounts receivable, net of allowance for doubtful accounts	80,960,000	71,017,000
Accumulated depreciation and amortization on property and equipment	11,800,000	9,100,000	$ 8,300,000
Accumulated amortization	16,336,000	13,015,000
Cost of patents, Gross	5,400,000	6,400,000
Cost of trademarks, Gross	900,000	800,000
Capitalized Software Development Costs for Software Sold to Customers	$ 500,000
Product life estimate	7 years
Capitalized Computer Software, Amortization	$ 200,000	200,000	200,000
Unamortized cost by company	900,000	600,000
Impairment of goodwill, intangible assets and other long-lived assets	$ 0	0	0
Number of Sources of Product Revenue | segment	4
Royalty Revenue, Number of Days Royalty Revenue is Adjusted Subsequent to Quarter End	60 days
Advertising costs	$ 10,700,000	10,700,000	9,600,000
Foreign currency transaction gain (loss)	$ 500,000	$ 1,000,000	$ 4,000,000
Options to purchase of shares of common stock | shares	0.7	5.7	7.2
Number of reportable segments | segment	1
Patents
Summary Of Significant Accounting Policies [Line Items]
Estimated life maximum	10 years
Accumulated amortization	$ 7,743,000	$ 6,649,000
Total renewal costs capitalized	$ 700,000
Weighted average number of years until the next renewal	1 year
Trademarks
Summary Of Significant Accounting Policies [Line Items]
Estimated life maximum	17 years
Accumulated amortization	$ 1,106,000	866,000
Total renewal costs capitalized		600,000
Weighted average number of years until the next renewal	5 years
Patents and trademarks
Summary Of Significant Accounting Policies [Line Items]
Accumulated amortization	$ 4,200,000	$ 3,700,000	$ 3,100,000
Minimum
Summary Of Significant Accounting Policies [Line Items]
Product life estimate	3 years
Warranty period for defects in material and workmanship	6 months
Maximum
Summary Of Significant Accounting Policies [Line Items]
Product life estimate	6 years
Warranty period for defects in material and workmanship	16 months
Restricted Stock Units (RSUs) [Member]
Summary Of Significant Accounting Policies [Line Items]
Weighted Average Number of Shares, Contingently Issuable | shares	0.4

Summary of Significant Accoun47

Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning of period	$ 1,416	$ 1,161	$ 838
Provision for warranty costs	800	1,144	1,560
Changes in pre-existing warranties (including changes in estimates)	(61)	(138)	(52)
Settlements made	(1,055)	(1,027)	(1,289)
Warranty accrual, end of period	$ 1,222	$ 1,416	$ 1,161

Summary of Significant Accoun48

Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended							9 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Jun. 28, 2014	Mar. 29, 2014	Sep. 27, 2014	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest									$ 81,500	$ 74,363	$ 55,721
Net income (loss) attributable to the noncontrolling interest									(1,800)	1,845	(2,660)
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 21,221,000	$ 13,802,000	$ 22,632,000	$ 14,863,000	$ 83,300	$ 72,518	$ 58,381
Weighted-average shares outstanding									51,311	54,708	56,690
Basic net income per share attributable to Masimo Corporation stockholders	$ 0.48	$ 0.38	$ 0.38	$ 0.39	$ 0.40	$ 0.25	$ 0.40	$ 0.28	$ 1.62	$ 1.33	$ 1.03
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted-average shares outstanding									51,311	54,708	56,690
Diluted share equivalents: stock options and RSUs									2,396	863	790
Weighted-average shares outstanding - diluted									53,707	55,571	57,480
Diluted net income per share attributable to Masimo Corporation stockholders	$ 0.46	$ 0.36	$ 0.36	$ 0.38	$ 0.40	$ 0.24	$ 0.39	$ 0.27	$ 1.55	$ 1.30	$ 1.02

Summary of Significant Accoun49

Summary of Significant Accounting Policies-Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Cash paid during the year for:
Interest (net of amounts capitalized)	$ 2,293	$ 469	$ 28
Income taxes	36,194	19,863	29,979
Noncash investing and financing activities:
Assets acquired under capital leases	0	0	352
Unpaid purchases of property, plant and equipment	4,371	12,155	507
Stock repurchased, unsettled at period end	$ 4,815	$ 0	$ 0

Variable Interest Entities (V50

Variable Interest Entities (VIEs) - Additional Information (Detail)	Aug. 07, 2007shares	Jan. 02, 2007company	Jul. 31, 2015USD ($)	Feb. 28, 2009	Oct. 03, 2015USD ($)	Sep. 27, 2014	Jan. 02, 2016USD ($)	Jan. 03, 2015USD ($)	Dec. 28, 2013USD ($)parameter	Dec. 29, 2012	Dec. 31, 2011
Variable Interest Entity [Line Items]
Number of Companies with Rights to Intellectual Property | company		2
Number of Parameters | parameter									5
License Fees Individual									$ 500,000
License Fee Aggregate									2,500,000
Patent and Licensing Fee - Aggregate			$ 2,400,000
Licensed Rainbow Parameters
Variable Interest Entity [Line Items]
Percentage of royalty expense (up to)							10.00%
Handheld Products Incorporating Rainbow Technology
Variable Interest Entity [Line Items]
Percentage of royalty expense (up to)							10.00%
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Minimum aggregate royalty payments							$ 6,700,000	$ 5,500,000	5,400,000
Increase in royalties payable in current year							15,000,000
Increase in the minimum aggregate annual royalties payment after current year							2,000,000
Percentage reimbursed				50.00%						60.00%	50.00%
Total expenses for additional services, material and supplies							300,000	3,100,000	4,100,000
Payment for Administrative Fees							200,000	200,000	200,000
Minimum | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Minimum aggregate royalty payments							5,000,000
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Percentage reimbursed						60.00%
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross					$ 900,000
Development Partner [Member] [Member]
Variable Interest Entity [Line Items]
Related Party Transaction, Amounts of Transaction							200,000	0	$ 0
Two Thousand Seven Plan [Member]
Variable Interest Entity [Line Items]
Common Stock Shares Added To Share Reserve | shares	1,700,000
Engineering-related Payroll Expenses [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned								$ 1,600,000
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross							$ 1,400,000

Variable Interest Entities (V51

Variable Interest Entities (VIEs) - Condensed Consolidating Schedules of Balance Sheets (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
ASSETS
Cash and cash equivalents	$ 132,317	$ 134,453	$ 95,466	$ 71,554
Accounts receivable, net	80,960	71,017
Inventories	62,038	69,718
Prepaid income taxes	2,404	417
Other current assets	21,423	21,471
Deferred cost of goods sold	66,844	67,485
Property and equipment, net	132,466	101,952
Intangible assets, net	27,556	27,771
Goodwill	20,394	20,979	22,793
Deferred income taxes	44,320	42,258
Other assets	11,013	7,485
Total assets	601,735	565,006
LIABILITIES
Accounts payable	25,865	38,045
Accrued compensation	38,415	33,600
Accrued liabilities	44,222	24,541
Income taxes payable	2,777	6,562
Deferred revenue	21,280	21,067
Current portion of capital lease obligations	74	79
Deferred revenue	298	453
Long term debt	185,071	125,145
Other liabilities	8,021	7,773
EQUITY
Common stock	50	52
Treasury stock	(340,873)	(185,906)
Additional paid-in capital	332,417	288,686
Accumulated other comprehensive (loss) income	(4,739)	(2,093)
Retained earnings (deficit)	288,560	205,260
Total Masimo Corporation stockholders’ equity	275,415	305,999
Noncontrolling interest	297	1,742
Total equity	275,712	307,741	$ 326,401	$ 275,668
Total liabilities and equity	601,735	565,006
Masimo Corp
ASSETS
Cash and cash equivalents	131,554	133,509
Accounts receivable, net	80,937	71,017
Inventories	62,038	69,718
Prepaid income taxes	2,342	324
Other current assets	21,230	21,446
Deferred cost of goods sold	66,844	67,485
Property and equipment, net	131,877	100,730
Intangible assets, net	29,045	29,564
Goodwill	20,394	20,979
Deferred income taxes	44,320	42,258
Other assets	11,013	7,450
Total assets	601,594	564,480
LIABILITIES
Accounts payable	25,798	38,003
Accrued compensation	37,715	32,985
Accrued liabilities	45,142	24,492
Income taxes payable	2,565	6,350
Deferred revenue	21,280	21,067
Current portion of capital lease obligations	74	79
Deferred revenue	298	453
Long term debt	185,071	125,145
Other liabilities	7,964	9,634
EQUITY
Common stock	50	52
Treasury stock	(340,873)	(185,906)
Additional paid-in capital	332,417	288,686
Accumulated other comprehensive (loss) income	(4,739)	(2,093)
Retained earnings (deficit)	288,832	205,533
Total Masimo Corporation stockholders’ equity	275,687	306,272
Total equity	275,687	306,272
Total liabilities and equity	601,594	564,480
Variable Interest Entity, Primary Beneficiary [Member]
ASSETS
Cash and cash equivalents	763	944
Accounts receivable, net	23	0
Prepaid income taxes	62	93
Other current assets	1,277	203
Property and equipment, net	589	1,222
Intangible assets, net	2,858	4,738
Deferred income taxes	0	0
Other assets	0	2,021
Total assets	5,572	9,221
LIABILITIES
Accounts payable	67	42
Accrued compensation	700	615
Accrued liabilities	164	227
Income taxes payable	212	212
Deferred revenue	376	500
Deferred revenue	3,406	6,031
Other liabilities	57	125
EQUITY
Common stock	14	11
Treasury stock	(100)	(100)
Additional paid-in capital	842	491
Retained earnings (deficit)	(166)	1,067
Total Masimo Corporation stockholders’ equity	590	1,469
Total equity	590	1,469
Total liabilities and equity	5,572	9,221
Cercacor Elim
ASSETS
Accounts receivable, net	0	0
Other current assets	(1,084)	(178)
Intangible assets, net	(4,347)	(6,531)
Other assets	0	(1,986)
Total assets	(5,431)	(8,695)
LIABILITIES
Accrued compensation	0	0
Accrued liabilities	(1,084)	(178)
Deferred revenue	(376)	(500)
Deferred revenue	(3,406)	(6,031)
Other liabilities	0	(1,986)
EQUITY
Common stock	(14)	(11)
Treasury stock	100	100
Additional paid-in capital	(842)	(491)
Retained earnings (deficit)	(106)	(1,340)
Total Masimo Corporation stockholders’ equity	(862)	(1,742)
Noncontrolling interest	297	1,742
Total equity	(565)
Total liabilities and equity	$ (5,431)	$ (8,695)

Variable Interest Entities (V52

Variable Interest Entities (VIEs) - Condensed Consolidating Schedules of Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended							9 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Jun. 28, 2014	Mar. 29, 2014	Sep. 27, 2014	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Statement of Comprehensive Income [Abstract]
Total revenue	$ 167,273	$ 152,575	$ 155,726	$ 154,537	$ 161,788	$ 140,923	$ 139,814	$ 144,118	$ 630,111	$ 586,643	$ 547,245
Cost of goods sold									220,128	195,864	188,418
Gross profit	101,745	102,232	102,901	103,105	109,159	93,095	92,301	96,224	409,983	390,779	358,827
Operating expenses:
Selling, general and administrative									252,725	241,016	215,469
Research and development									56,617	56,581	55,631
Litigation settlement, award and/or defense costs									(19,609)	(10,331)	8,010
Total operating expenses									289,733	287,266	279,110
Operating income	36,892	28,140	27,841	27,377	32,647	18,405	30,193	22,268	120,250	103,513	79,717
Non-operating expense									3,905	1,472	3,991
Income before provision for income taxes									116,345	102,041	75,726
Provision for income taxes									34,845	27,678	20,005
Net income including noncontrolling interest									81,500	74,363	55,721
Net income (loss) attributable to the noncontrolling interest									(1,800)	1,845	(2,660)
Net income attributable to Masimo Corporation stockholders	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 21,221,000	$ 13,802,000	$ 22,632,000	$ 14,863,000	83,300	72,518	58,381
Masimo Corp
Statement of Comprehensive Income [Abstract]
Total revenue										586,643	547,245
Cost of goods sold									226,788	201,334	193,775
Gross profit									403,323	385,309	353,470
Operating expenses:
Selling, general and administrative									250,627	238,674	213,374
Research and development									50,292	53,449	51,762
Litigation settlement, award and/or defense costs									(19,609)	(8,010)	8,010
Total operating expenses									281,310	284,113	273,146
Operating income									122,013	101,196	80,324
Non-operating expense									3,910	1,505	3,991
Income before provision for income taxes									118,103	99,691	76,333
Provision for income taxes									34,803	27,173	17,952
Net income including noncontrolling interest									83,300	72,518	58,381
Net income attributable to Masimo Corporation stockholders									83,300	72,518	58,381
Variable Interest Entity, Primary Beneficiary [Member]
Statement of Comprehensive Income [Abstract]
Total revenue									6,910	5,970	5,732
Cost of goods sold									0	0	0
Gross profit									6,910	5,970	5,732
Operating expenses:
Selling, general and administrative									2,348	2,842	2,470
Research and development									6,325	3,132	3,869
Litigation settlement, award and/or defense costs									0	(2,321)	0
Total operating expenses									8,673	3,653	6,339
Operating income									(1,763)	2,317	(607)
Non-operating expense									(571)	(33)	0
Income before provision for income taxes									(1,192)	2,350	(607)
Provision for income taxes									42	505	2,053
Net income including noncontrolling interest									(1,234)	1,845	(2,660)
Net income attributable to Masimo Corporation stockholders									(1,234)	1,845	(2,660)
Cercacor Elim
Statement of Comprehensive Income [Abstract]
Total revenue									(6,910)	(5,970)	(5,732)
Cost of goods sold									(6,660)	(5,470)	(5,357)
Gross profit									(250)	(500)	(375)
Operating expenses:
Selling, general and administrative									(250)	(500)	(375)
Total operating expenses									(250)	(500)	(375)
Non-operating expense									566
Income before provision for income taxes									(566)
Net income including noncontrolling interest									(566)
Net income (loss) attributable to the noncontrolling interest									(1,800)	1,845	(2,660)
Net income attributable to Masimo Corporation stockholders									$ 1,234	$ (1,845)	$ 2,660

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	12 Months Ended
	Jan. 02, 2016USD ($)death	Jan. 03, 2015USD ($)	Dec. 28, 2013USD ($)
Related Party Transaction [Line Items]
Estimate of annual preventable hospital deaths prevented by 2020 (more than) | death	200,000
Not for Profit Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 6,250,000	$ 2,800,000	$ 100,000
Not for Profit Social Welfare Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	10,000	10,000	100,000
Development Partner [Member] [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	200,000	0	0
Non Profit Child Welfare Organization [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	2,000	27,000	76,000
Variable Interest Entity, Primary Beneficiary [Member] | Not for Profit Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	220	500,000	0
Variable Interest Entity, Primary Beneficiary [Member] | Cercacor Laboratories | Not for Profit Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	$ 25,000	$ 25,000	$ 25,000

Inventories - Components of Inv

Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 25,781	$ 33,056
Work in-process	4,337	6,020
Finished goods	31,920	30,642
Total	$ 62,038	$ 69,718

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($) $ in Millions	Jan. 02, 2016	Jan. 03, 2015
Inventory Disclosure [Abstract]
Finished goods inventory held by distributors	$ 2.9	$ 3.6

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Royalties receivable	$ 7,200	$ 7,200
Prepaid expenses	9,930	9,816
Employee loans and advances	320	385
Other current assets	3,973	4,070
Total other current assets	$ 21,423	$ 21,471

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 197,938	$ 159,036
Construction-in-progress	7,124	25,731
Accumulated depreciation and amortization	(65,472)	(57,084)
Total	132,466	101,952
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,460	38,588
Building and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	78,877	30,678
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,738	22,894
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,023	13,035
Tooling
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,079	12,317
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,734	9,912
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,885	4,864
Demonstration units
Property, Plant and Equipment [Line Items]
Property and equipment, gross	973	972
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 45	$ 45

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) $ in Thousands	Jan. 26, 2016ft²	Jan. 02, 2016USD ($)ft²	Jan. 03, 2015USD ($)
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Number of Square Feet Purchased | ft²		90,000
Property, Plant and Equipment, Gross		$ 197,938	$ 159,036
Property, Plant and Equipment, Additions		$ 8,500
Property Plant and Equipment, Occupied Square Feet | ft²		108,000
Property, Plant and Equipment, Transfers and Changes		$ 41,700
Accumulated amortization		65,472	57,084
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		23,738	22,894
Property, Plant and Equipment, Additions		700
Building and improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		78,877	30,678
Property, Plant and Equipment, Additions		5,700
Capital lease obligations
Property, Plant and Equipment [Line Items]
Furniture and office equipment, gross		400	600
Accumulated amortization		300	400
Research and Development Headquarters, Irvine, California [Member]
Property, Plant and Equipment [Line Items]
Interest Costs Capitalized		400	600
CALIFORNIA | Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		4,000	20,300
CALIFORNIA | Accounts Payable [Member] | Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 4,200	$ 10,000
Lease Agreements [Member]
Property, Plant and Equipment [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²	70,700

Intangible Assets - Components

Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Cost
Total cost	$ 43,892	$ 40,786
Accumulated amortization
Accumulated amortization	(16,336)	(13,015)
Total	27,556	27,771
Patents
Cost
Total cost	21,619	20,459
Accumulated amortization
Accumulated amortization	(7,743)	(6,649)
Customer relationships
Cost
Total cost	7,669	7,669
Accumulated amortization
Accumulated amortization	(2,620)	(1,853)
Acquired technology
Cost
Total cost	5,580	5,580
Accumulated amortization
Accumulated amortization	(1,950)	(1,392)
Trademarks
Cost
Total cost	3,944	3,562
Accumulated amortization
Accumulated amortization	(1,106)	(866)
Capitalized software development costs
Cost
Total cost	2,539	2,066
Accumulated amortization
Accumulated amortization	(1,647)	(1,440)
Other
Cost
Total cost	2,541	1,450
Accumulated amortization
Accumulated amortization	$ (1,270)	$ (815)

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2,014	$ 3,461
2,015	3,318
2,016	3,189
2,017	2,922
2,018	2,805
Thereafter	11,861
Total	$ 27,556	$ 27,771

Goodwill - Changes in Goodwill

Goodwill - Changes in Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 20,979	$ 22,793
Foreign currency translation adjustment	(585)	(1,814)
Goodwill, end of period	$ 20,394	$ 20,979

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Other Liabilities Disclosure [Abstract]
Accrued customer rebates, fees and reimbursements	$ 11,857	$ 11,645
Accrued legal fees	5,785	5,117
Accrued donations	5,612	300
Accrued arbitration award	5,391	0
Accrued taxes	5,263	4,372
Accrued stock repurchases	4,815	0
Accrued warranty	1,222	1,416
Accrued other	4,277	1,691
Total accrued liabilities	$ 44,222	$ 24,541

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Sep. 29, 2014	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013	Jan. 08, 2016
Debt Instrument [Line Items]
Long term portion of capital lease obligations acquisition		$ 71,000	$ 145,000
Total long term debt		185,071,000	125,145,000
Interest expense		$ 2,400,000	600,000	$ 100,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate at period end		1.6875%
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Minimum | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Commitment fee percentage	0.175%
Minimum | Revolving Credit Facility [Member] | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Minimum | Revolving Credit Facility [Member] | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
Maximum | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Commitment fee percentage	0.30%
Maximum | Revolving Credit Facility [Member] | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Maximum | Revolving Credit Facility [Member] | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Line of Credit, Noncurrent		$ 185,000,000	$ 125,000,000
Increase in borrowing capacity	$ 125,000,000
Current borrowing capacity	$ 250,000,000
Subsequent Event [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Current borrowing capacity					$ 50,000,000
Subsequent Event [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Current borrowing capacity					450,000,000
Maximum borrowing capacity					550,000,000
Subsequent Event [Member] | Other Foreign Currency Sublimit [Member]
Debt Instrument [Line Items]
Current borrowing capacity					$ 125,000,000

Other Liabilities, Long-Term -

Other Liabilities, Long-Term - Components of Other Liabilities (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Other Liabilities Disclosure [Abstract]
Unrecognized tax benefit	$ 7,747	$ 6,812
Deferred Tax Liabilities, Net, Noncurrent	194	0
Other	80	961
Total other liabilities, long-term	$ 8,021	$ 7,773

Equity - Additional Information

Equity - Additional Information (Detail)	Nov. 08, 2007shares$ / shares	Oct. 31, 2014shares	Feb. 28, 2013shares	Jan. 02, 2016$ / sharesshares	Jan. 03, 2015$ / sharesshares	Dec. 28, 2013$ / sharesshares
Equity [Line Items]
Dividends declared for outstanding common stock	One preferred stock purchase right
Preferred stock voting rights per share	$ 1
Par value of preferred stock under stockholder rights plan				$ 0.001	$ 0.001
Number of right to be issued with each share of common stock | shares	1
Average cost per share				$ 37.36	$ 23	$ 19.79
Shares repurchased | shares				4,148,000	4,455,000	1,000,000
Series A Preferred Stock
Equity [Line Items]
Par value of preferred stock under stockholder rights plan	$ 0.001
Purchase price per right	$ 136
Common Stock
Equity [Line Items]
Period of stock repurchase program			36 months
2013 Repurchase Program [Member] | Common Stock
Equity [Line Items]
Number of common shares authorized to be repurchased under repurchase program | shares		9,000,000	6,000,000
Stock Repurchase Program, Increase (Decrease) in Number of Shares Authorized to be Repurchased | shares		3,000,000

Equity Stock Repurchase Progr66

Equity Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Equity [Abstract]
Shares repurchased	4,148	4,455	1,000
Average cost per share	$ 37.36	$ 23	$ 19.79
Value of shares repurchased	$ 154,967	$ 102,453	$ 19,791

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	Aug. 07, 2007	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013	Dec. 31, 2011
Schedule Of Share Based Compensation Arrangements [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 22.7
Percentage of company's total shares outstanding		3.00%			3.00%
Common stock reserved for future issuance		15,900,000
Unrecognized share-based compensation related to unvested options granted		$ 0.1
Total fair market value of all vesting options		10.4	$ 11.2	$ 12.3
Aggregated intrinsic value of options outstanding		147.8
Aggregated intrinsic value of options exercisable		94.2
Aggregated intrinsic value of options exercised		$ 26.4	$ 6.6	4.2
Weighted average remaining contractual term of options outstanding, years price below the market value		5 years 6 months 15 days
Weighted average remaining contractual term of options exercisable, years			4 years
Total income tax benefit recognized for share-based compensation expense		$ 3.7	$ 3.7	$ 3.9
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		4,000,000
Two Thousand Seven Plan [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Issuance of options to purchase shares	3,000,000
Expiration period of options	10 years
Common stock shares added to share reserve	1,700,000
Employee Stock Option [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Unrecognized share-based compensation related to unvested options granted, term		3 years 3 months 15 days
Restricted Stock Units (RSUs) [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Unrecognized share-based compensation related to unvested options granted, term		1 year
Two Thousand Seven Plan [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Vesting period of options	5 years
Two Thousand Seven Plan [Member] | Restricted Stock Units (RSUs) [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		25.00%

Share-Based Compensation - Numb

Share-Based Compensation - Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans (Detail) - $ / shares shares in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Shares, Options outstanding, beginning of period	9,956	8,911	8,368
Shares, Granted	914	1,887	1,653
Shares, Canceled	(218)	(416)	(795)
Shares, Exercised	(1,450)	(426)	(315)
Shares, Expired	0	0	0
Shares, Options outstanding, end of period	9,202	9,956	8,911
Shares, Options exercisable, end of period	5,609	5,859	5,188
Shares, Options available for grant, end of period	4,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Average Exercise Price, Options outstanding, beginning of period	$ 23.59	$ 22.76	$ 22.78
Average Exercise Price, Granted	36.18	24.83	21.17
Average Exercise Price, Canceled	24.33	24.46	24.53
Average Exercise Price, Expired	0	0	0
Average Exercise Price, Options exercisable, end of period	24.72	23.63	22.69
Average Exercise Price, Exercised	19.54	10.95	10.49
Average Exercise Price, Options outstanding, end of period	$ 25.46	$ 23.59	$ 22.76

Share-Based Compensation - Rang

Share-Based Compensation - Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant (Detail) - $ / shares	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Risk-free interest rate, minimum	1.30%	1.40%	0.70%
Risk-free interest rate, maximum	1.90%	1.90%	1.80%
Estimated volatility, minimum	32.00%	31.70%	31.20%
Estimated volatility, maximum	37.40%	36.50%	39.60%
Expected dividends	0.00%	0.00%	0.00%
Weighted-average fair value of options granted	$ 12.20	$ 7.85	$ 7.53
Maximum
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Expected term, years	5 years 8 months 12 days	5 years 6 months	5 years 6 months
Minimum
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Expected term, years	5 years 6 months	5 years 1 month 6 days	5 years 1 month 6 days

Share-Based Compensation - Tota

Share-Based Compensation - Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	$ 10,825	$ 11,005	$ 11,674
Cost of goods sold
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	348	436	354
Selling, general and administrative
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	8,139	8,812	9,407
Research and development
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	$ 2,338	$ 1,757	$ 1,913

Share-Based Compensation - Nu71

Share-Based Compensation - Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Detail) - $ / shares shares in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013	Dec. 29, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options, Options Outstanding	9,202	9,956	8,911	8,368
Average Remaining Contractual Life, Options Outstanding	5 years 6 months 22 days	5 years 11 months 9 days
Number of Options, Options Exercisable	5,609	5,859	5,188
$2.75 to $4.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 2.75
Range of Exercise Prices, Upper	$ 4
Number of Options, Options Outstanding	0	67
Average Remaining Contractual Life, Options Outstanding		3 months 22 days
Number of Options, Options Exercisable	0	67
$4.01 to $12.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 4.01
Range of Exercise Prices, Upper	$ 12
Number of Options, Options Outstanding	304	639
Average Remaining Contractual Life, Options Outstanding	8 months 9 days	1 year 5 months 9 days
Number of Options, Options Exercisable	304	639
$12.01 to $16.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 12.01
Range of Exercise Prices, Upper	$ 16
Number of Options, Options Outstanding	450	539
Average Remaining Contractual Life, Options Outstanding	1 year 4 months 13 days	2 years 4 months 13 days
Number of Options, Options Exercisable	450	539
$16.01 to $23.98
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 16.01
Range of Exercise Prices, Upper	$ 23.98
Number of Options, Options Outstanding	3,698	4,256
Average Remaining Contractual Life, Options Outstanding	6 years 7 months 2 days	7 years 6 months 29 days
Number of Options, Options Exercisable	1,867	1,580
$23.99 to $28.99
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 23.99
Range of Exercise Prices, Upper	$ 28.99
Number of Options, Options Outstanding	2,033	2,426
Average Remaining Contractual Life, Options Outstanding	5 years 8 months 19 days	6 years 6 months 15 days
Number of Options, Options Exercisable	1,297	1,320
$23.99 to $28.99
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 29
Range of Exercise Prices, Upper	$ 31.99
Number of Options, Options Outstanding	1,822	1,744
Average Remaining Contractual Life, Options Outstanding	4 years 2 months 12 days	4 years 5 months 16 days
Number of Options, Options Exercisable	1,429	1,435
$32.00 to $38.30
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 32
Range of Exercise Prices, Upper	$ 38.30
Number of Options, Options Outstanding	215	97
Average Remaining Contractual Life, Options Outstanding	7 years 22 days	3 years 10 months 13 days
Number of Options, Options Exercisable	75	92
$38.31 to $41.51
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 38.31
Range of Exercise Prices, Upper	$ 41.51
Number of Options, Options Outstanding	560	188
Average Remaining Contractual Life, Options Outstanding	7 years 1 month 6 days	3 years 4 months 24 days
Number of Options, Options Exercisable	187	187
$41.52 to $43.76
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 41.52
Range of Exercise Prices, Upper	$ 43.76
Number of Options, Options Outstanding	120	0
Average Remaining Contractual Life, Options Outstanding	9 years 10 months 13 days
Number of Options, Options Exercisable	0	0

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Unvested RSU Award Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs outstanding, beginning of period	0	0	0
Granted	2,703	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 41.45	$ 0	$ 0
Expired	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expired in Period	0	0	0
Vested	0	0	0
RSUs outstanding, end of period	2,703	0	0
Weighted Average Grant Date Fair Value - RSUs outstanding	$ 0	$ 0	$ 0
Chairman and Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	2,700

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ / shares in Units, shares in Thousands	Jan. 26, 2016ft²	Jan. 02, 2016USD ($)Agreement	Nov. 16, 2015USD ($)	Oct. 01, 2014USD ($)	Jan. 16, 2014USD ($)	Jan. 03, 2014USD ($)	Jul. 09, 2009patent	Sep. 30, 2011sales_representatives	Mar. 29, 2014USD ($)	Dec. 28, 2013USD ($)	Jan. 02, 2016USD ($)ft²distributorAgreement$ / sharesshares	Jan. 03, 2015USD ($)distributor$ / sharesshares	Dec. 28, 2013USD ($)$ / sharesshares	Oct. 21, 2015claim	Oct. 03, 2015USD ($)	Jan. 31, 2014participant
Contingencies And Commitments [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²											108,000
Accrued rent expense		$ 200,000									$ 200,000	$ 400,000
Rental expense related to operating leases											4,800,000	6,100,000	$ 5,100,000
Interest included in future minimum capital lease payments (less than $0.1 million)		$ 100,000									$ 100,000
Employee contribution percentage limit for full consideration under Employee Retirement Savings Plan											3.00%
Company's contribution to employee retirement savings plan											$ 1,800,000	$ 1,700,000	1,500,000
Severance plan participation agreements | Agreement		7									7
Required notice of resignation											6 months
Remaining amount committed		$ 35,900,000									$ 35,900,000
Commitments and contingencies (Note 15)
Bank balances		$ 57,200,000									$ 57,200,000
Bank balance covered by Federal Deposit Insurance Corporation limit		2,400,000									2,400,000
Money market funds		20,100,000									20,100,000
Uninsured deposits		55,000,000									55,000,000
Royalty											$ 30,777,000	$ 29,879,000	29,816,000
Royalty rate Percentage											7.75%
Royalty Revenue, Number of Days Royalty Revenue is Adjusted Subsequent to Quarter End											60 days
Number of Former Sales Representatives | sales_representatives								2
Litigation settlement amount				$ 466,800,000
Litigation settlement, award and/or defense costs											$ (19,609,000)	(10,331,000)	8,010,000
Loss Contingency Accrual, Period Increase (Decrease)									$ (8,000,000)
Number of Participants in the Surfactant, Positive Pressure, and Oxygenation Randomized Trial | participant																2
Number of inter partes review petitions, Patent Trial and Appeal Board of the US Patent Office | claim														3
Automobiles
Contingencies And Commitments [Line Items]
Operating lease expiration date											Dec. 1, 2020
Pulse oximetry products
Contingencies And Commitments [Line Items]
Sale of company's products to customers											$ 337,400,000	309,900,000	287,900,000
Masimo vs. Philips
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent							1
Masimo vs Former Physician Office Sales Representatives
Contingencies And Commitments [Line Items]
Litigation settlement amount					$ 5,400,000
Litigation Settlement Interest		700,000
Litigation settlement, award and/or defense costs										$ 2,600,000
Masimo vs. Physicians Healthsource, Inc. [Member]
Contingencies And Commitments [Line Items]
Damages sought per violation						$ 500
Parent Company [Member]
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent							2
Litigation settlement, award and/or defense costs											(19,609,000)	(8,010,000)	$ 8,010,000
Philips Patent [Member]
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent							1
Unsecured Bank Guarantees
Contingencies And Commitments [Line Items]
Commitments and contingencies (Note 15)		300,000									300,000
Revolving Credit Facility [Member]
Contingencies And Commitments [Line Items]
Long-term Line of Credit, Noncurrent		$ 185,000,000									$ 185,000,000	$ 125,000,000
CEO Employment Agreement [Member]
Contingencies And Commitments [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award											2.7
Supplemental Unemployment Benefits, Severance Benefits															$ 35,000,000
Employment Agreement, Severance Terms											10.00%
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination											$ 146,900,000
Sales [Member]
Contingencies And Commitments [Line Items]
Number of just-in-time distributors | distributor											2
Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Number of just-in-time distributors | distributor											2	2
Lease Agreements [Member]
Contingencies And Commitments [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²	70,700
Restricted Stock Units (RSUs) [Member]
Contingencies And Commitments [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expired in Period | shares											0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares											$ 41.45	$ 0	$ 0
Installment Payment, First [Domain] | Shenzhen Mindray [Member]
Contingencies And Commitments [Line Items]
Litigation settlement amount			$ 25,000,000
Just in time distributor one
Contingencies And Commitments [Line Items]
Percentage Of Revenue Two Customer											0.00%	0.00%	0.00%
Just in time distributor two | Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors											5.30%
Percentage of accounts receivable balance from two just-in-time distributor												8.80%
Just In Time Distributor Three [Member] | Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors											5.50%	5.00%

Commitments and Contingencies74

Commitments and Contingencies - Future Minimum Lease Payments Under Operating and Capital Leases (Detail) $ in Thousands	Jan. 02, 2016USD ($)
Operating Leases
2,016	$ 3,633
2,017	3,223
2,018	3,278
2,019	2,482
2,020	1,033
Thereafter	0
Total	13,649
Capital Leases
2,016	88
2,017	82
2,018	8
2,019	8
2,020	3
Thereafter	0
Total	189
Total
2,016	3,721
2,017	3,305
2,018	3,286
2,019	2,490
2,020	1,036
Thereafter	0
Total	$ 13,838

Segment Information and Enter75

Segment Information and Enterprise Reporting - Analysis of Product Revenue Based upon Geographic Area Shipped (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Long-Lived Assets	$ 210,323	$ 176,922	$ 93,401
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 599,334	$ 556,764	$ 517,429
Total product revenue, in percentage	100.00%	100.00%	100.00%
Concentration Risk, Long-lived Asset Geographic Area, Percentage	100.00%	100.00%	100.00%
North and South America
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 438,336	$ 398,066	$ 378,894
Total product revenue, in percentage	73.10%	71.50%	73.20%
Europe, Middle East and Africa
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 105,323	$ 100,747	$ 83,338
Total product revenue, in percentage	17.60%	18.10%	16.10%
Asia and Australia
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 55,675	$ 57,951	$ 55,197
Total product revenue, in percentage	9.30%	10.40%	10.70%
United States
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 421,628	$ 380,232	$ 361,630
Reportable Geographical Components [Member] | Americas [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Long-Lived Assets	$ 203,553	$ 170,117	$ 87,228
Analysis of Product Revenues Based upon the Geographic Area Shipped
Concentration Risk, Long-lived Asset Geographic Area, Percentage	96.80%	96.20%	93.40%
Reportable Geographical Components [Member] | Non-US [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Long-Lived Assets	$ 6,770	$ 6,805	$ 6,173
Analysis of Product Revenues Based upon the Geographic Area Shipped
Concentration Risk, Long-lived Asset Geographic Area, Percentage	3.20%	3.80%	6.60%

Income Taxes - Components of In

Income Taxes - Components of Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Tax Disclosure [Abstract]
United States	$ 87,762	$ 69,282	$ 50,782
Foreign	28,583	32,759	24,944
Income before provision for income taxes	$ 116,345	$ 102,041	$ 75,726

Income Taxes - Current and Defe

Income Taxes - Current and Deferred Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Current:
Federal	$ 31,983	$ 22,553	$ 24,488
State	2,388	2,736	2,426
Foreign	2,448	2,709	1,704
Total	36,819	27,998	28,618
Deferred:
Federal	(900)	342	(7,281)
State	(1,206)	(811)	(970)
Foreign	132	149	(362)
Total	(1,974)	(320)	(8,613)
Income Tax Expense (Benefit)	$ 34,845	$ 27,678	$ 20,005

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Taxes [Line Items]
Income tax credits and adjustments			$ 1
Tax and accrued interest related to uncertain tax positions	$ (0.6)	$ (1.1)	$ (0.3)
Effective tax rate	30.00%	27.10%	26.40%
Operating loss carryforwards, gross	$ 0.1
Indefinitely carryforward research and development credits	4.5
Investment Tax Credit	0.4
Estimated income tax benefit	0.7
Deferred Tax Assets, Tax Credit Carryforwards, Research	1
Foreign Tax Expense (Benefit), Business and Employment Actions	$ 1.3	$ 1.6	$ 1.2
Earnings Per Share, Diluted, Effect of Foreign Tax Benefit Relating to Business and Employment Actions	$ 0.02	$ 0.03	$ 0.02
Tax benefit from stock options exercised	$ 5.1	$ 0.2	$ 0.7
Deferred income taxes	110.3
Additional income tax expense	34.5
Amount of unrecognized benefits affecting future tax rate	7.2	6.7
Penalties and interest related to unrecognized tax benefits	$ 1.1	$ 0.9	0.9
Domestic Tax Authority | Variable Interest Entity, Primary Beneficiary [Member]
Income Taxes [Line Items]
Valuation allowance			$ 2.3

Income Taxes - Deferred Tax Pro

Income Taxes - Deferred Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Tax Disclosure [Abstract]
Total	$ (1,974)	$ (320)	$ (8,613)

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail)	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Income Tax Disclosure [Abstract]
Statutory regular federal income tax rate	35.00%	35.00%	35.00%
State provision, net of federal benefit	0.70%	1.20%	1.30%
Nondeductible items	1.70%	1.30%	0.90%
Foreign tax rate differential	(6.30%)	(8.20%)	(9.80%)
Tax credits	(1.70%)	(1.50%)	(3.50%)
Change in federal valuation allowance	0.40%	(0.10%)	3.00%
Other	0.20%	(0.60%)	(0.50%)
Total	30.00%	27.10%	26.40%

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Jan. 03, 2015
Deferred tax assets:
Tax credits	$ 4,683	$ 3,260
Deferred revenue	3,994	4,943
Accrued liabilities	20,817	14,723
Share-based compensation	20,688	21,594
Other	2,416	3,191
Total	52,598	47,711
Valuation allowance	(4,196)	(3,365)
Total deferred tax assets	48,402	44,346
Deferred tax liabilities:
State taxes and other	(4,276)	(2,088)
Total deferred tax liabilities	(4,276)	(2,088)
Net deferred tax assets	$ 44,126	$ 42,258

Income Taxes - Reconciliation82

Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits (gross), beginning of period	$ 8,024	$ 6,630
Increase from tax positions in prior period	131	830
Increase from tax positions in current period	1,616	958
Settlements	0	0
Lapse of statute of limitations	(896)	(394)
Unrecognized tax benefits (gross), end of period	$ 8,875	$ 8,024

Quarterly Financial Data (una83

Quarterly Financial Data (unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended							9 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Jun. 28, 2014	Mar. 29, 2014	Sep. 27, 2014	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 167,273	$ 152,575	$ 155,726	$ 154,537	$ 161,788	$ 140,923	$ 139,814	$ 144,118	$ 630,111	$ 586,643	$ 547,245
Gross profit	101,745	102,232	102,901	103,105	109,159	93,095	92,301	96,224	409,983	390,779	358,827
Operating income	36,892	28,140	27,841	27,377	32,647	18,405	30,193	22,268	120,250	103,513	79,717
Net income attributable to Masimo Corporation stockholders	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 21,221,000	$ 13,802,000	$ 22,632,000	$ 14,863,000	$ 83,300	$ 72,518	$ 58,381
Net income per share attributable to Masimo Corporation stockholders:
Basic (in usd per share)	$ 0.48	$ 0.38	$ 0.38	$ 0.39	$ 0.40	$ 0.25	$ 0.40	$ 0.28	$ 1.62	$ 1.33	$ 1.03
Diluted (in usd per share)	$ 0.46	$ 0.36	$ 0.36	$ 0.38	$ 0.40	$ 0.24	$ 0.39	$ 0.27	$ 1.55	$ 1.30	$ 1.02

Schedule II - Valuation and Q84

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 1,890	$ 1,833	$ 1,956
Additions charged to expense and other accounts	397	583	728
Amounts charged against reserve	(320)	(526)	(851)
Balance at end of period	1,967	1,890	1,833
Allowance for Sales Returns [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	472	429	516
Additions charged to expense and other accounts	2,621	1,832	1,881
Amounts charged against reserve	(2,383)	(1,789)	(1,968)
Balance at end of period	710	472	429
Valuation Allowance of Deferred Tax Assets [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	3,365	3,563	2,441
Additions charged to expense and other accounts	831	0	3,163
Amounts charged against reserve	0	(198)	(2,041)
Balance at end of period	$ 4,196	$ 3,365	$ 3,563